Author Question: When a government defaults on its obligations, the event is called a A) sovereign default. B) ... (Read 61 times)

vHAUNG6011 · **on:** Jun 30, 2018

When a government defaults on its obligations, the event is called a

A) sovereign default.
B) magisterial default.
C) private default.
D) sudden stop default.
E) national default.

Question 2

Suppose that the effective return to a U.S. investor from buying a U.K. bond is 5.55. Forward and spot exchange rates (/) are 2.10 and 2.00 respectively. The interest rate on the U.K. bond is most likely equal to:

A) 5.45
B) 5.500
C) 5.650
D) 5.60