The Treasurer has noticed that the interest rate in Japan is below most other countries. It was suggested that the company issue bonds in Japanese Yen. What considerations should be taken to account?
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- (C). A balance sheet for a hypothetical central bank is shown below: Central Bank Balance Sheet in photo Write the new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency.D4) Finance 3）Recently China Bank helped Asian Development Bank issue 1 billion yuan bonds in China’s interbank market. This bonds we called A. dim sum bonds B. panda bonds C. Eurodollar D. Yen bonds. Discuss the impact of the recent Domestic Debt Exchange Program (DDEP) on the financial market of Ghana
- Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply. There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market. The currency in that foreign market is expected to appreciate against the MNC's home currency. There is a lower interest rate in that foreign country. The MNC intends to finance a project in a specific country and in a specific currency. If there is 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 risk.Why are U. S. Treasury bonds considered to be safe? O They are repaid from user fees. O They are secured by the full-faith-and-credit of the U. S. government. O They mature in one year or less. O They provide income exempt from all forms of income taxes.A bank dealing in foreign currency tells you that the foreign currency will buy you $.80 US dollars. The bank has given you a. a direct quote. b. an indirect quote. c. the official (fixed) rate. d. a forward rate.
- 8. Second Bank has the following balance sheet in millions of dollars, with the Basel risk weights given in parentheses. a. Does the bank have enough capital to meet the requirements as specified by Basel II? b. The bank wishes to keep its Tier 1 ratio at 5%. They will sell a portion of their consumer loans and invest them in U.S. government bonds. How much consumer loans should they sell? U.S. Govt T-Bonds (o%) $10om Deposits $ 950m Govt. Agency FNMA Bonds (20%) $200m Subordinated Debt ((Tier II) $ 1om University Dorm bonds (50%) $30om Preferred Stock (Tier II) $ 25m Consumer Loans AAA-rated (20%) $20om Commercial Loans BBB-rated (100%) $200m Equity (Tier I) $ 15m $100om $1000m TotalQuestion 4a) Discuss the possible effects of Ghana’s rising public Debt on the cedi to dollar exchange rate.b. Why would one company with interest payments due in pounds sterling want to swap those payments for interest payments due in U.S. dollars? Write an example.
- 6. How does the deposit insurance help the depositors? What are the pitfalls of the scheme? Can it help stabilizing Hong Kong dollar exchange rate in the face of regional and global financial crises?International Finance (chapter 21) Question Explain how each of the following will affect the relative values of the dollar and the French franc: Income growth higher in the United States than in France. Inflation higher in France than in the United States. A real interest rate higher in the United States than in France PLease solve 1Assume that the interest rate in the Japan is 6% and that the Yen is expected to depreciate by 2% against the Australian dollar during the year. For each Australian dollar that an Australian resident invests in Japanese bonds, he/she can expect to get back a total of: A. $1.24 B. $1.08 C. $1.14 D. $1.04 E. $0.84