Standard & Poor's has for years provided credit ratings on international bonds.
A) The ratings reflect the safety of principal for a U.S. investor.
B) Their ratings reflect the creditworthiness of the borrower and not exchange rate uncertainty.
C) Their ratings reflect creditworthiness of the lender and predict the exchange rate expected to prevail at maturity.
D) The ratings are biased since 40 percent of Eurobond issues are rated AAA and 30 percent are AA.
Correct Answer:
Verified
Q58: A ten-year Floating-rate note (FRN) has coupons
Q59: A five-year floating-rate note has coupons referenced
Q59: Floating-rate notes
A)are a form of adjustable rate
Q61: A five-year, 4 percent Euroyen bond sells
Q62: Find the value today of a 2-year
Q64: Zero-coupon bonds issued in 2006 are due
Q65: A 2-year, 4 percent euro denominated bond
Q66: Consider a British pound-U.S. dollar dual currency
Q67: Your firm has just issued five-year floating-rate
Q68: A 1-year, 4 percent pound denominated bond
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents