3. What is a euro-euro deposit?

4. Contrast foreign bonds and Eurobonds

6. Define market segmentation and explain its causes. What are the main advantages and disadvantages for a firm to be in a segmented market?

9. A US firm borrows yen at 4% for one year. The current spot exchange rate is 100yen/$ but is expected to change to 110yen/$ during the year. What is the expected dollar cost (in percentage) of the yen borrowing?

10. *The US firm borrows euros at 5% for one year. The spot exchange rate is 1.4$/euro, and one-year forward exchange rate is 1.35$/euro. What is the exchange risk-covered dollar cost of (in percentage) euro borrowing?