IBO 06 International Business Finance
Solved Assignment 2020-21
Maximum
Marks: 100
Attempt
all the questions.
Q-1 Define
Balance of Payments. Explain the inter-relationship between Current Account,
Capital Account and Reserve Account with examples.
Q-2 (a) What
is foreign exchange market? Explain its significance and the functions of
participants.
(b) What is
political risk? How do international firms manage political risk arising in the
host countries?
Q-3 What is
translation exposure? How is it different from transaction exposure? Discuss
the various techniques of managing translation exposure.
Q-4 What are
the benefits of project export? What are the risk included in project exports?
Discuss the various kinds of bonds/guarantees in project export.
Q-5 Define
yield curve. How is it constructed? How does interest rate risk influence yield
curve. Explain.
Absalom Motor's 14% coupon rate, Semiannual Payment, $1,000 per value bonds that mature in 30 years are callable 5 years from now at a price of $1,050. The bond's at a price of $1,353.54 and the yield curve is flat. Assuming that interest rates in the ecenomy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds ?
ReplyDelete