Question
General Motors issued 1 year note in the Euro-bond market that matures in 1 year. The bond has a par value of $100 and it
General Motors issued 1 year note in the Euro-bond market that matures in 1 year. The bond has a par value of $100 and it will pay a 5.5% coupon.
What is the investor's exposure to loss in the event of a bankruptcy?
a. $100.00
b. $105.50
c. $5.50
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
