Calculate and write journal entries for the following scenarios:

1. Assume that Nevermore, Inc., a U.S.-based subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02. How many PKR does the MNC need to obtain the $US 1 million needed. --- =50,000,000PKR

2. The Dakota Corporation decided to issue three-year bonds denominated in 5 million Russian rubles at par. The bonds have a coupon rate of 17 percent. If the ruble is expected to appreciate from its current level of $.03 to $.032, $.034, and $.035 in years 1, 2, and 3, respectively, what is the financing cost of these bonds?----= 23.395%

3. Waddell, Inc., based in Oregon, exports products to a French firm and will receive payment of 200,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, Waddell negotiated a forward contract with a bank to sell 200,000 forward in three months. The spot rate of the euro on September 1 is $1.15. How may dollars will Waddell receive for the euros. ----= $220,000

4. The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is the forward rate at a discount or a premium, and by what percentage? ----= 1.84%

5. The 90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward premium or discount of the euro? ----= 7.62%

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