1. Two months from today you plan to borrow $3 million for 3 months at LIBOR. You hedge your interest rate risk with a euro dollar futures contract priced at 93.6. If settled in arrears, what is your payment if the 3-month LIBOR rate is 2.5% (not annualized) in two months?
2 .What is the value of a 15 year zero coupon bond, if the required return for the bond is 7%?
3. In what ways does the theory of finance categorize payments to foreign officials as an investment?