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The Exchange Rate May Also Have an Indirect Effect on a Business

question 26

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The exchange rate may also have an indirect effect on a business through its impact on competitors or suppliers. This form of exposure is known as:


Definitions:

Coupon Rate

The percentage of a bond's face value that is annually paid as interest by the bond.

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.

Coupon Bond

A type of bond that provides periodic interest payments to its holder, based on a fixed interest rate (coupon rate) until its maturity, at which point the principal amount is repaid.

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