Multiple Choice Questions on International Finance: bond denominated in Indian rupees, Swap
1. Assume a U.S.-based subsidiary wants to raise $1,000,000 by issuing a bond denominated in Indian rupees (RS). The current exchange rate of the rupee is $.025. Thus, the MNC needs ___________ rupees to obtain the $1,000,000 needed. A) 50,000,000 B) 20,000 C) 1,000,000 D) 40,000,000 2. Good Company prefers variable to fi