Which of the following statements correctly describes characteristics of an Australian 13-week Treasury note? Group of answer choices A. If market yields don’t change then the value of the Treasury Note will decrease each day until its price is equal to its face value at expiry. B. Treasury notes are not issued by private companies. C. The coupons offered by a Treasury Note are generally set equal to the market yield to maturity to ensure that the issuer can raise the face value of the note at the time of issuance. D. None of the other statements are correct.

(Round to the nearest cent.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Today is February 15, 2008 Issue Date Coupon Rale Maturity Date Current Type Price YTM Rating Yield Note Feb 2006 7.25% 2-15-2016 5.722% AAA Print Done %24

Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.5 million, a one-year period, an initial spot rate of SF1.4700/5. a 5.148% cost of debt, and a 34% tax rate, what is the effective after-tax cost of debt for one year for a U.S. dollar-based company if the exchange rate at the end of the period was a. SF14700/$ b. SF1.4300/5 c. SF1.3980/ d. SF1.6050/5 GULD a. If the exchange rate at the end of the period was SF1.4700/5, what is the effective after-tax cost of debt? % (Round to four decimal places)

dollars of the February 2005 Treasury note? nearest cent.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Today is February 15, 2008 Current Сoupon Rate Maturity Date Typo Issue Price YTM Rating Date Yield Note Feb 2005 8.00% 2-15-2015 5.301% AAA Print Done

9. In 2016, when the interest rate on 10-year German government bonds became negative, an article in the Wall Street Journal noted that the interest rate on 10-year bonds depended in part on investors' expectations of future short-term interest rates. The article also noted that "investors don't seem to have changed their perception of... [short-term] interest rates in the future." If the article is correct, can the expectations theory explain why the interest rate on 10-year German government bonds declined? Can the risk premium theory? Briefly explain.

Foreign Exchange Risk and the Cost of Borrowing Swiss Francs.  The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF 1.6 ​million, a​ one-year period, an initial spot rate of SF​ 1.4600/$, a 4.934​% cost of​ debt, and a ​38% tax​ rate, what is the effective​ after-tax cost of debt for one year for a U.S.​ dollar-based company if the exchange rate at the end of the period​ was: a. 1.4600SF​/$ b. 1.4000SF​/$ c. 1.3350SF​/$ d. 1.5730SF​/$

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You observe that the current interest rate on short-term U.S. Treasury bills is 4.86 percent. You also read in the newspaper that the GDP deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, currently implies that inflation is 1.65 percent. What is the approximate real rate of interest on short-term Treasury bills? (Enter your answer as a percent rounded to 2 decimal places.)

A Canadian bank that issues  AUD 250M 5-year bonds to  fund  AUD 200M loans with 6-year maturity  is exposed to the following risks : A depreciation of the Australian dollar against the Canadian plus credit plus liquidity risk plus reinvestment risk, i.e. decreasing interest rates. A depreciation of the Australian dollar against the Canadian dollar, plus credit risk plus liquidity risk plus refinancing risk, i.e. increasing interest rates. An appreciation of the Australian dollar against the Canadian dollar, plus credit risk plus  refinancing risk, i.e. increasing interest rates. An appreciation of the Australian dollar against the Canadian dollar, plus credit risk plus reinvestment risk, i.e. decreasing interest rates.

(Fair Value Option) Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay’s Bank and has the following data related to the carrying and fair value for these notes. Any changes in fair value are due to changes in market rates, not credit risk.   Carrying Value Fair Value December 31, 2017 $54,000 $54,000 December 31, 2018 44,000 42,500 December 31, 2019 36,000 38,000 Instructions(a) Prepare the journal entry at December 31 (Fallen’s year-end) for 2017, 2018, and 2019, to record the fair value option for these notes.(b) At what amount will the note be reported on Fallen’s 2018 balance sheet?(c) What is the effect of recording the fair value option on these notes on Fallen’s 2019 income?(d) Assuming that general market interest rates…