Questions from Corporate Finance

Q: Smith Company and Jones Company enter into an interest rate swap,

Smith Company and Jones Company enter into an interest rate swap, with Smith paying fixed interest to Jones, and Jones paying floating interest to Smith. Smith now goes bankrupt, and so defaults on it...

Q: Convert the following indirect quotes to direct quotes, and direct quotes

Convert the following indirect quotes to direct quotes, and direct quotes to indirect quotes: a. Euro: €1.22/$ (indirect quote) b. Russia: Rubl 30/$ (indirect quote c. Canada: $0.72/C$ (direct quote)...

Q: The IMF classifies all exchange rate regimes into eight specific categories that

The IMF classifies all exchange rate regimes into eight specific categories that are summarized in this chapter. Under which exchange rate regime would you classify each of the following countries?

Q: The U.S. dollar has maintained or increased its value

The U.S. dollar has maintained or increased its value over the past 20 years, despite running a gradually increasing current account deficit. Why has this phenomenon occurred?

Q: Brazil has experienced periodic depreciation of its currency over the past 20

Brazil has experienced periodic depreciation of its currency over the past 20 years, despite occasionally running a current account surplus. Why has this phenomenon occurred?

Q: Technically, what is a sovereign default?

Technically, what is a sovereign default?

Q: It has been claimed that failures in corporate governance have hampered the

It has been claimed that failures in corporate governance have hampered the growth and profitability of some prominent firms located in emerging markets. What are some typical causes of these failures...

Q: The measurement of all international economic transactions between the residents of a

The measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments (BOP). What institution provides the primary sourc...

Q: If a country follows a fixed exchange rate regime, what macroeconomic

If a country follows a fixed exchange rate regime, what macroeconomic variables could cause the fixed exchange rate to be devalued?

Q: Why have eurocurrencies and LIBOR remained the centerpiece of the global financial

Why have eurocurrencies and LIBOR remained the centerpiece of the global financial marketplace for so long?