Multiple Choice
When an MNC finances with a floating-rate loan in a currency that matches its long-term cash inflows, the MNC is exposed to ____ risk.
A) interest rate
B) credit
C) exchange rate
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q12: If a U.S.-based MNC issues a bond
Q21: A floating coupon rate is an advantage
Q24: Floating-rate bonds are oFten issued with a
Q25: _ are commonly used to hedge interest
Q30: Some MNCs use a country's yield curve
Q33: Currency swaps, whereby two parties exchange currencies
Q34: The _ for a given country represents
Q38: An interest rate swap between two firms
Q43: When estimating the cost of debt financing
Q44: Even if a foreign interest rate is