29.

"Dragon" bonds are

A.

dollar-denominated foreign bonds originally sold to U.S. investors.

B.

dollar-denominated bonds originally sold in Asia with non-Japanese issuers.

C.

pound sterling-denominated foreign bonds originally sold in the U.K.

D.

none of the above

30.

The term interest rate swap

A.

refers to a "single-currency interest rate swap" shortened to "interest rate swap".

B.

involves "counterparties" who make a contractual agreement to exchange cash flows at periodic intervals.

C.

can be "fixed-for-floating rate" or "fixed-for-fixed rate".

D.

all of the above

31.

Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:

A.

fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating-rate debt obligations for fixed-rate interest payments of the other counter party.

B.

fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency for the debt service obligations of the other counter party denominated in another currency.

C.

both a and b

D.

none of the above

32.

The primary reasons for a counterparty to use a currency swap are

A.

to hedge and to speculate.

B.

to play in the futures and forward markets.

C.

to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market, and the benefit of hedging long-run exchange rate exposure.

D.

both a and b

33.

The size of the swap market is

A.

measured by notational principal.

B.

over 7 trillion dollars.

C.

both a and b

D.

none of the above