Assume a UK-Based Subsidiary Wants to Raise £1,000,000 by Issuing

Multiple Choice

Assume a UK-based subsidiary wants to raise £1,000,000 by issuing a bond denominated in Pakistani rupees (PKR) . The current exchange rate of the rupee is £0.01. Thus, the MNC needs ____ rupees to obtain the $1,000,000 needed.

A) 100,000,000
B) 10,000
C) 1,000,000
D) None of the above