19.

With any successful hedge

A.

you are guaranteed to lose money on one side.

B.

you can avoid the accounting ramifications of a loss on one side by keeping it off the books.

C.

both a and b

D.

none of the above

20.

In any given year, about what percent of new international bonds are likely to be Eurobonds rather than foreign bonds?

A.

80%

B.

45%

C.

25%

D.

15%

21.

In any given year, about what percent of outstanding bonds are likely to be international rather than domestic bonds?

A.

70%

B.

50%

C.

30%

D.

5%

22.

A "foreign bond" issue is

A.

one denominated in a particular currency but sold to investors in national capital markets other than the country that issued the denominating currency.

B.

one offered by a foreign borrower to investors in a national market and denominated in that nation's currency.

C.

for example, a German MNC issuing dollar-denominated bonds to U.S. investors.

D.

both b and c

23.

The four currencies in which the majority of domestic and international bonds are denominated are

A.

U.S. dollar, the euro, the Indian rupee, and the Chinese Yuan.

B.

U.S. dollar, the euro, the pound sterling, and the Swiss franc.

C.

U.S. dollar, the euro, the Swiss franc, and the yen.

D.

U.S. dollar, the euro, the pound sterling, and the yen.