Finance 24-28

A is a bond sold within a country, denominated in that country's currency, but the issue is form outside that country. A) foreign bond B) Euro bond C) domestic bond D) global bond E) none of the above If annualized interest rates in the U.S and Switzerland are 9% and 13%, respectively, and the spot value of the franc is $ 1109, then at what 180-days forward rate will interest rate parity hold? c. $, 1070 b. $1150 c. $, 1088 d. $, 1130 e. none of the above If a U.S. multinational firm borrows euros for one year at 8% interest, and during the year the euro appreciate by 7% relative to the dollar, the approximate before-tax coat of this debt in dollar terms is a. 14.64% b. 13.64% C. 13.49% d. 13.56% c. 16.64% The inflation rates in the U.S. and France are expected to be 4% per annum and 7% per annum, respectively. If the current spot rate is $.1050, then the expected spot rate in three years is a. $, 1150 b. $.1112 c. $.0964 d. $.0992 e. none of the above A call on cum with an exercise price of $1.35/euro has a premium of $0.05 per euro. If the spot rate al expiration is $1.34, then the net gain for the buyer of the call is a. $ -0.05 per euro. b. $ -0.04 per euro. c.$+0.05 per euro. d. $ + 0.04 per euro, c. $0.06 per euro