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your firm has presently issued five year floating-rate notes indexed to six-month us dollar libor plus 14 what is the amount of first coupon
you are an investment banker advising a eurobank with reference to a new international bond offering it is considering the carries on are to be
discuss the process of bringing a new international bond issue to marketanswer a borrower desiring to increase funds by issuing eurobonds to the
what factors does standard amp poorrsquos analyze in determining the credit rating it assigns a sovereign governmentanswer in rating a sovereign
why do most international bonds have high moodyrsquos or standard amp poorrsquos credit ratingsanswer moodyrsquos investors service and standard
explain composite currency bondcomposite currency bonds are denominated in a currency basket like sdrs or ecus in place of a single currencythey are
explain dual currency bonda dual currency bond is a straight fixed-rate bond that is issued in one currency and pays coupon interest in that similar
explain zero coupon bondsthe bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as zero
define a convertible bonda convertible bond issue permits the investor to exchange the bond for a pre-defined number of equity shares of the
define floating rate notes floating-rate notes frns are commonly medium-term bonds along with their coupon payments indexed to some reference
define the straight fixed-rate bondstraight fixed-rate bond issues comprise a designated maturity date at which the principal of the bond issue is
describe the differences between foreign bonds and eurobonds also discuss why eurobonds make up the lions share of the international bond
explain how eurocurrency is createdanswer the center of the international money market is the eurocurrency market a eurocurrency is a time deposit of
a bank comprises a 500 million portfolio of investments and bank credits the everyday standard deviation of return on this portfolio is 666 capital
a company borrows 1500000 at libor plus a lending margin of 125 percent per year on a six-month rollover basis from a london bank if six-month
what is the difference between the euronote market the euro-medium-term-note market and the eurocommercial paper marketanswer euronotes are
how does the deposit-loan rate spread in the eurodollar market compare with the deposit-loan rate spread in the domestic us banking system
briefly discuss some of the services that international banks provide their customers and the market placeanswer international banks can be
a pharmaceutical company named xyz plans to deliver trials to three different clinics c1 c2 and c3 the trials are used for the emergency treatments
as of november 1 1999 the exchange rate in between the brazilian real and us dollar is r195 the agreement forecast for the us and brazil inflation
assume that the current spot exchange rate is ff625 and the 3 month forward exchange rate is ff628 the 3 month interest rate is 56 per year in the us
presently the spot exchange rate is 150pound and the three-month forward exchange rate is 152pound the three-month interest rate is 80 per year in
assume that the treasurer of a company has an extra cash reserve of 1000000 to invest for six months the six-month interest rate is 8 per year in the
derive and illustrate the monetary approach to exchange rate determinationanswer the monetary approach is related with the chicago school of
explain the random walk model for exchange rate forecasting can it be consistent along with the technical analysisanswer the random walk model