Which of the following are reasons why an MNC might issue bonds in a particular foreign...
- Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply.
- The MNC intends to finance a project in a specific country and in a specific currency.
- The currency in that foreign market is expected to depreciate against the MNC’s home currency.
- There is a lower interest rate in that foreign country.
- There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market.
If there is ________(no active market OR a highly active market) for a bond, a bondholder may not be able to sell a bond at the desired time or may have to decrease the price of their bonds in order to sell them. The risk of this occurrence is known as __________( liquidity, interest rate, exchange rate, OR credit) risk.
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Which of the following are reasons why an MNC might issue bonds
in a particular foreign...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational cor...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
Basic bond valuation Complex Systems has an outstanding issue of$1,000 par value bonds with a 8%...
Basic bond valuation Complex Systems has an outstanding issue of$1,000 par value bonds with a 8% coupon interest rate. The issue pays interest annually and has 10 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond sel for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems...
All of the following statements regarding diversification are correct EXCEPT? A. diversification is not enhanced by the addition of foreign securities to a portfolio because they are always highly cor...
All of the following statements regarding diversification are correct EXCEPT? A. diversification is not enhanced by the addition of foreign securities to a portfolio because they are always highly correlated with domestic equity. B. to minimize interest rate risk, one could diversify within the fixed-income asset category by staggering bond maturity dates. C. to minimize business risk, one could allocate among a number of asset categories and purchase mutual funds. D. to reduce liquidity risk, one would keep a sufficient...
Can anyone answer the question and explain it thx alot 8. Foreign direct investment would be...
Can anyone answer the question and explain it thx alot
8. Foreign direct investment would be the acquisition abroad by the MNC of a) sales offices b) distribution channels c) plant and equipment d) portfolio securities 9. The most important element in determining whether and how a firm should expand overseas is a) the degree of government subsidies and protection provided b) whether the firm's competitive advantages can be transferred abroad and how this can best be done c) the...
6) Which of the following statements about bonds is true? A) If market interest rates are...
6) Which of the following statements about bonds is true? A) If market interest rates are above a bond's coupon interest rate, then the bond will sell below its par value. B) As the maturity date of a bond approaches, the market value of a bond will become more volatile. C) Bond prices move in the same direction as market interest rates. D) Long-term bonds have less interest rate risk than do short-term bonds.
5. Interest rate parity Aa Aa E The rise of globalization is due to the many...
5. Interest rate parity Aa Aa E The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency...
3. Secondary bond market Which of the following best explains the existence of the secondary market...
3. Secondary bond market Which of the following best explains the existence of the secondary market for bonds? A- Bondholders may not wish to hold onto bonds until maturity and therefore may sell them for cash. B- Foreign investors always seek to buy more government bonds. C- The government must always sell some bonds to cover its budget deficits. D- Bondholders must hold onto bonds until they mature. Suppose the interest payments and face value of bonds don’t change. As...
Basic bond valuation Complex Systems has an outstanding issue of $1.000 por bonds with a 15%...
Basic bond valuation Complex Systems has an outstanding issue of $1.000 por bonds with a 15% coupon interest rate The pay wrest l y and has 14 years remaning to its maturity date. a. bonds of similsk are curently coming of rum of 13 how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the wateon mankbonds is below the coupon state on the Complex Systems bond c. I the required return were...
Can anyone answer the question and explain thx alot 21) Which of the following was created...
Can anyone answer the question and explain thx alot
21) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) the Organization for Economic Cooperation and Development D) multilateral development banks 22) Which type of bond is denominated in one or more currencies but is traded in external markets outside the borders of the countries issuing the currencies? A) Eurobond B) domestic bond C) international bond D) foreign...
need answer with why thank u 5. Which of the following statements is false of foreign...
need answer with why
thank u
5. Which of the following statements is false of foreign aid? A) Foreign aid is commonly provided to sub-Saharan Africa. B) Foreign aid may not efficient in cradicating poverty because of poverty trap. C) In some instances, foreign aid can be beneficial for dictators. D) The concept of foreign aid was introduced in the twenty-first century. 6. Which of the following is likely to shift the demand curve for carpenters rightward, assuming all else...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
Basic bond valuation Complex Systems has an outstanding issue of$1,000 par value bonds with a 8% coupon interest rate. The issue pays interest annually and has 10 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond sel for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems...
Can anyone answer the question and explain it thx alot
8. Foreign direct investment would be the acquisition abroad by the MNC of a) sales offices b) distribution channels c) plant and equipment d) portfolio securities 9. The most important element in determining whether and how a firm should expand overseas is a) the degree of government subsidies and protection provided b) whether the firm's competitive advantages can be transferred abroad and how this can best be done c) the...
6) Which of the following statements about bonds is true? A) If market interest rates are above a bond's coupon interest rate, then the bond will sell below its par value. B) As the maturity date of a bond approaches, the market value of a bond will become more volatile. C) Bond prices move in the same direction as market interest rates. D) Long-term bonds have less interest rate risk than do short-term bonds.
5. Interest rate parity Aa Aa E The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency...
Basic bond valuation Complex Systems has an outstanding issue of $1.000 por bonds with a 15% coupon interest rate The pay wrest l y and has 14 years remaning to its maturity date. a. bonds of similsk are curently coming of rum of 13 how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the wateon mankbonds is below the coupon state on the Complex Systems bond c. I the required return were...
Can anyone answer the question and explain thx alot
21) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) the Organization for Economic Cooperation and Development D) multilateral development banks 22) Which type of bond is denominated in one or more currencies but is traded in external markets outside the borders of the countries issuing the currencies? A) Eurobond B) domestic bond C) international bond D) foreign...
need answer with why
thank u
5. Which of the following statements is false of foreign aid? A) Foreign aid is commonly provided to sub-Saharan Africa. B) Foreign aid may not efficient in cradicating poverty because of poverty trap. C) In some instances, foreign aid can be beneficial for dictators. D) The concept of foreign aid was introduced in the twenty-first century. 6. Which of the following is likely to shift the demand curve for carpenters rightward, assuming all else...
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