Managing Operating Exposure

question 96

Multiple Choice

Managing operating exposure

• A)is a short-term tactical issue.
• B)is a long-term issue,like selecting a site for a factory.
• C)is relatively unimportant,since most MNCs have a built-in hedge.
• D)none of the options

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Definitions:

Semi-Annually

Occurring or conducted twice a year.

Face Value

The nominal or dollar value printed on a bond, stock, or other financial instrument, representing the amount due at maturity.

Coupon Rate

The interest rate on a bond paid by the issuer, which is a fixed percentage of the bond's face value, yielding regular interest payments to the bondholder.

Yield To Maturity

The total return anticipated on a bond if it is held until the date of its maturity, including all interest and principal repayments.