Some of the Foreign-Based Corporations in Hong Kong Require Their

question 50

Multiple Choice

Some of the foreign-based corporations in Hong Kong require their employees who transfer to Hong Kong to learn something about the culture and the language, even though English is commonly spoken. These businesses are clearly concerned with errors associated with

• A)cross-cultural bias.
• B)using the local work force.
• C)the halo effect.
• D)social facilitation.

Analyze the relationship between the coupon rate, YTM, and bond prices for various types of bonds (premium, discount, par value).

Understand the concept and implications of the term structure of interest rates.

Explain the implications of different interest rate environments on bond prices and yields.

Discuss the reasoning and implications behind issuing very long-term bonds.