One problem with the approach used in question 16.8 is ________
A) it is difficult to determine the foreign cash flows in the foreign currency
B) it is difficult to determine the appropriate foreign currency spot rate to the domestic currency
C) it is difficult to determine the appropriate foreign currency discount rate to the domestic currency
D) it is difficult to determine the domestic currency cash flows
C) it is difficult to determine the appropriate foreign currency discount rate to the domestic currency
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What is a government debt security with a fixed interest rate that matures between one and ten years?
A) Treasury bond B) Treasury inflation-protected securities (TIPS) C) Treasury note (T-note) D) Profit bond E) Treasury bill (T-bill)
Which of the following statements about sample size is false?
a. There is no direct relationship between population size and the size of the sample required to estimate population parameters. b. The larger the sample variance, the larger the sample size that is required. c. The higher the level of confidence, the larger the sample size that is required. d. The larger the population, the larger the sample size that is required. e. All of these statements are false.
Which of the following types of debt protect a bondholder against an increase in interest rates?
A) Floating rate debt. B) Bonds that are redeemable ("putable") at par at the bondholders' option. C) Bonds with call provisions. D) All of the above. E) Only answers a and b above.
[Stolen Bicycle] Jason borrowed his friend Sabrina's bicycle. She told him that she was happy to let him to use it for free, but that she would appreciate him taking good care of it. Jason said nothing in reply. Jason lived in a high crime neighborhood, but he left the bicycle unlocked on his deck anyway. The next morning, he discovered that the bicycle had been stolen. Jason told Sabrina that he was very sorry about the bicycle. Sabrina told him that she expected him to pay for it. Jason refused on the basis that a thief took the bicycle. Jason told Sabrina that he believes he knows the identity of the thief and that since only Sabrina has the right to sue to recover the property, he has no further responsibility.Which of the following statements is true regarding Jason's obligation to
Sabrina? A. He is liable for the theft of the bicycle arising out of his ordinary or gross negligence. B. He is not liable for the theft of the bicycle because of the doctrine of assumption of the risk. C. He is liable for the theft of the bicycle arising out of his gross negligence. D. He is strictly liable for the theft of the bicycle. E. He is liable for the theft of the bailed property caused by even the slightest lack of due care on his part.