Intl. Financial Sample Queations - 2068 Words

University of San Francisco School of Management PRACTICE FINAL EXAM BUS 430 Prof. Sara Ding International Financial Management Spring 2013 Instructions: Answer all questions in Part A, Part B, and Part C. Write your answers for Part A on the next page and write your answers for Part B and Part C in the space provided below the question. You may use one page (double sided) of notes and a financial calculator, but no other materials. Section:_______________________ Name:________________________ USF ID:_______________________ Score Sheet Part A (Write your answer to the multiple choice questions below) 1. ________ 2. ________ 3. ________ 4. ________ 5. ________ 6. ________ 7. ________ 8. ________ 9. ________ 10. ________ 11.†¦show more content†¦If she wishes to protect the firm against an unfavorable increase in interest rates she could: A) sell an interest rate futures contract of a similar maturity to the loan. B) buy an interest rate futures contract of a similar maturity to the loan. C) swap the adjustable rate loan for another of a different maturity. D) none of the above 13) A U.S. investor makes an investment in Britain and earns 14% on the investment while the British pound appreciates against the U.S. dollar by 8%. What is the investor s total return? A) 22.00% B) 23.12% C) 6.00% D) 4.88% 14) The Mexican government sold $1bn century bonds, with a maturity of 100 year, in Europe in 2010. The bond is classified as _______? A) foreign bond B) Eurobond C) domestic bond 4 D) none of the above 15) MacDonalds issued a 3-year dim sum bond at 3% in 2010. Dim sum bond is: A) Chinese yuan-denominated bonds issued in Hong Kong. B) U.S. dollar-denominated bonds issued in Hong Kong. C) Chinese yuan-denominated bonds issued in U.S. D) Hong Kong dollar-denominated bonds issued in U.S. 16) You bought June 2013 interest rate futures settled at 98.07. If the floating-rate interest in June is 2.01%, what is your gain/loss: A) Gain 0.08 B) Loss 0.08 C) Gain 96.06 D) Loss 96.06 5 Part B 1. (20 points) Interest rate and currency swap Using the table of swap rates, assume Trident enters into a three year swap agreement to receive euros and pay Japanese yen, on