Generally, the Financing Costs Associated with a Foreign Currency-Denominated Bond

question 35

Multiple Choice

Generally, the financing costs associated with a foreign currency-denominated bond will be ____ volatile than the financing costs of a domestic bond because of ____.

• A)more; exchange rate movements
• B)less; exchange rate movements
• C)less; global economic conditions
• D)none of the above

---

Definitions:

Constructive Condition

An implied condition in contracts that must be met before the obligation of the other party becomes due, even if it is not explicitly stated in the contract itself.

Impracticability

A doctrine that excuses a party from performing a contract when unforeseen events make performance excessively difficult or expensive.

Good Faith

Good Faith is the concept of acting with honesty and sincerity without any intention to defraud or seek unfair advantage.

Consequential Damages

Losses suffered as a consequence of a breach of contract, not directly caused by the breach but resulting from the specific circumstances of the affected party.