To convert a project's future cash flows into another currency, we need to use today's spot exchange rates. Question options:

True

False

Zylex Corporation's German unit is looking to borrow 4.5 million from Deutsche Bank. Deutsche Bank quotes a rate of three-month LIBOR plus 0.5 percent for the 90-day loan. Currently, the three-month LIBOR is 4.175 percent. If the exchange rate on the payoff date is 0.8334/$, what is the dollar cost of the loan? (Round your final answer to two decimal places.)

Question options:

$126,214.90

$39,143.76

$56,357.99

$63,107.45

Long-term debt instruments sold by firms to investors in countries other than the country in whose currency the bonds are denominated are called _____.

Question options:

	foreign bonds
	Samurai bonds
	Eurobonds
	currency bonds