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Author Question: Which of the following has the least interest rate risk? A) an AT&T bond maturing in 15 years ... (Read 75 times)

fox

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on: Jul 10, 2018
Which of the following has the least interest rate risk?
 
  A) an AT&T bond maturing in 15 years
  B) a 15-year U.S. Treasury bond
  C) a six-month unsecured promissory note from International Harvester
  D) an eight-year investment certificate from a federally insured bank

Question 2

A U.S.-based multinational corporation has 100 owned subsidiary in Argentina. The subsidiary
  operates only domestically, that is, all transactions occur within Argentina. Therefore, the U.S.
  multinational corporation
 
  A) is exposed to translation risk only.
  B) is most concerned with transactions exposure.
  C) is not exposed to exchange rate risk because the subsidiary operates 100 domestically.
  D) is exposed to both translation exposure and economic exposure.


sultana.d

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Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

D


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