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.

Question

Quizplus · Accepted Answer

To raise £1,000,000 at an exchange rate of £0.01 per PKR, the MNC needs 100,000,000 PKR (1,000,000 / 0.01 = 100,000,000).

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