Ch012InternationalBondMarketdoc.docx
- 文档编号:5096632
- 上传时间:2022-12-13
- 格式:DOCX
- 页数:15
- 大小:36.31KB
Ch012InternationalBondMarketdoc.docx
《Ch012InternationalBondMarketdoc.docx》由会员分享,可在线阅读,更多相关《Ch012InternationalBondMarketdoc.docx(15页珍藏版)》请在冰豆网上搜索。
Ch012InternationalBondMarketdoc
Eun&Resnick4e
CHAPTER12InternationalBondMarket
TheWorld’sBondMarkets:
AStatisticalPerspective
ForeignBondsandEurobonds
BearerBondsandRegisteredBonds
NationalSecurityRegulations
WithholdingTaxes
OtherRecentRegulatoryChanges
GlobalBonds
TypesofInstruments
StraightFixed-RateIssues
Euro-Medium-TermNotes
Floating-RateNotes
Equity-RelatedBonds
Zero-CouponBonds
Dual-CurrencyBonds
CurrencyDistribution,Nationality,andTypeofIssuer
InternationalBondMarketCreditRatings
InternationalFinanceinPractice:
HeinekenRefreshesEuromarketwithSpectacularUnratedBonds
EurobondMarketStructureandPractices
PrimaryMarket
SecondaryMarket
ClearingProcedures
InternationalBondMarketIndexes
Summary
MINICASE:
SaraLeeCorporation’sEurobonds
TheWorld’sBondMarkets:
AStatisticalPerspective
1Inanygivenyear,whatpercentofnewinternationalbondsarelikelytobeEurobondsratherthanforeignbonds
a)80%
b)45%
c)25%
d)15%
Answer:
a)
ForeignBondsandEurobonds
2A“foreignbond”issueis
a)onedenominatedinaparticularcurrencybutsoldtoinvestorsinnationalcapitalmarketsotherthanthecountrythatissuedthedenominatingcurrency
b)oneofferedbyaforeignborrowertoinvestorsinanationalmarketanddenominatedinthatnation’scurrency
c)forexample,aGermanMNCissuingdollar-denominatedbondstoU.S.investors
d)b)andc)
Answer:
d)
3
A“Eurobond”issueis
a)onedenominatedinaparticularcurrencybutsoldtoinvestorsinnationalcapitalmarketsotherthanthecountrythatissuedthedenominatingcurrency
b)usuallyabearerbond
c)forexampleaDutchborrowerissuingdollar-denominatedbondstoinvestorsintheU.K.,Switzerland,andtheNetherlands
d)Alloftheabove
Answer:
d)
4Inanygivenyear,rightly80percentofnewinternationalbondsarelikelytobe
a)Eurobonds
b)Foreigncurrencybonds
c)Domesticbonds
d)Noneoftheabove
Answer:
a)
5“Yankee”bondsare
a)dollar-denominatedforeignbondsoriginallysoldtoU.S.investors
b)yen-denominatedforeignbondsoriginallysoldinJapan
c)poundsterling-denominatedforeignbondsoriginallysoldintheU.K.
d)noneoftheabove.
Answer:
a)
6“Samurai”bondsare
a)dollar-denominatedforeignbondsoriginallysoldtoU.S.investors
b)yen-denominatedforeignbondsoriginallysoldinJapan
c)poundsterling-denominatedforeignbondsoriginallysoldintheU.K.
d)noneoftheabove.
Answer:
b)
7“Bulldog”bondsare
a)dollar-denominatedforeignbondsoriginallysoldtoU.S.investors
b)yen-denominatedforeignbondsoriginallysoldinJapan
c)poundsterling-denominatedforeignbondsoriginallysoldintheU.K.
d)noneoftheabove.
Answer:
c)
BearerBondsandRegisteredBonds
8A“bearerbond”isonethat
a)showstheowner’snameonthebond
b)theowner’snameisrecordedbytheissuer
c)possessionisevidenceofownership
d)a)andb)
Answer:
c)
9A“registeredbond”isonethat
a)showstheowner’snameonthebond
b)theowner’snameisrecordedbytheissuer
c)theowner’snameisassignedtoabondserialnumberrecordedbytheissuer
d)botha)andb),orc)
Answer:
d)
10U.S.securityregulationsrequireYankeebondsandU.S.corporatebondssoldtoU.S.citizenstobe
a)Municipalbonds
b)registeredbonds
c)bearerbonds
d)noneoftheabove
Answer:
b)
NationalSecurityRegulations
11PubliclytradedYankeebondsmust
a)MeetthesameregulationsasU.S.domesticbonds
b)MeetthesameregulationsasEurobondsifsoldtoEuropeans
c)MeetthesameregulationsasSamuraibondsifsoldtoJapanese
d)Noneoftheabove
Answer:
a)
12TheEurobondsegmentoftheinternationalbondmarket:
a)Isroughlyfourtimesthesizeoftheforeignbondsegment.
b)Hasconsiderablylessregulatoryhurdlesthantheforeignbondsegment.
c)TypicallyhasalowerrateofinterestthatborrowerspayincomparisontoYankeebondfinancing.
d)Alloftheabove
Answer:
d)
WithholdingTaxes
13U.S.corporations
a)Areallowedtoissuebearerbondstonon-U.S.citizens
b)Arenotallowedtoissuebearerbonds
c)AreallowedtoissuetreasurybondsbutnotT-bills
d)Noneoftheabove
Answer:
a)
OtherRecentRegulatoryChanges
14Shelfregistration
a)Allowsasetofbookshelvestoremainlevel.
b)Allowsanissuertopreregisterasecuritiesissue,andthen“shelve”thesecuritiesforlatersale.
c)Allowsaninvestmentbanktoincreasethefeestheychargebychargingforstorageofthe“shelved”securities
d)Eliminatestheinformationdisclosurethatmanyforeignfirmsfoundobjectionableintheforeignbondmarket.
Answer:
b)
15Rule144A
a)AllowsqualifiedinstitutioninvestorsintheUnitedStatestotradeprivateplacements.
b)WasdesignedtomaketheU.S.capitalmarketmorecompetitivewiththeEurobondmarket.
c)Primarily,butnotexclusively,impactsYankeebonds.
d)Alloftheabove.
Answer:
d)
GlobalBonds
16A“globalbond”issue
a)isaverylargeinternationalbondofferingbyseveralborrowerspooledtogether
b)isaverylargeinternationalbondofferingbyasingleborrowerthatissimultaneouslysoldinseveralnationalbondmarkets
c)hashigheryieldsforthepurchasers
d)hasalowerliquidity
Answer:
b)
17AglobalbondissuedenominatedinU.S.dollarsandissuedbyU.S.corporations
a)TradeasEurobondsoverseas
b)TradeasdomesticbondsintheU.S.domesticmarket
c)Botha)andb)
d)Noneoftheabove
Answer:
c)
18Globalbondissues
a)CansaveU.S.issuers15basispointsrelativetodomesticbonds,allelseequal
b)TendtohaveincreasedliquidityrelativetoEurobondsordomesticbonds
c)Havebeenpartiallyfacilitatedbyrule144A
d)Alloftheabove
Answer:
d)
TypesofInstruments
19Intermsofthetypesofinstrumentsoffered,
a)TheYankeebondmarkethasbeenmoreinnovativethantheinternationalbondmarket
b)TheinternationalbondmarkethasbeenmuchmoreinnovativethantheU.S.market.
c)ThemostinnovationshavecomefromMilan,justlikeanyotherfashion
d)Noneoftheabove
Answer:
b)
StraightFixed-RateIssues
20Findthepresentvalueofa10-yearTreasurybondthatpaysasemi-annualcoupon,hasacouponrateof6%,ayieldtomaturityof5%,aparvalueof$1,000whentheyieldtomaturityis5%.
a)$1,018.81
b)$1,231.15
c)$699.07
d)noneoftheabove
Answer:
a)
Rationale:
ifyourstudentshavefinancialcalculatorsandhavehadapreviousfinanceclass,thisiseasy:
withthecalculatorsettotwopaymentsperyear,N=4;I/Y=5%;PMT=$30;FV=$1,000;calculatePV=$1,018.81
Ifnot,then:
.Thebookdoesnotexplicitlycoverbondpricing;howevermanyprofessorsreviewbondpricinginthischapter.Useyourjudgment.
21Thevastmajorityofnewinternationalbondofferings
a)Arestraightfixed-ratenotes
b)Arecallableandconvertible
c)Areconvertibleadjustablerate
d)Areadjustablerate,withinterestratecapsandcollars.
Answer:
a)
22Thevastmajorityofnewinternationalbondofferings
a)Makeannualcouponpayments
b)Havefixedcouponpayments
c)Haveafixedmaturity
d)Alloftheabove
Answer:
d)
Euro-Medium-TermNotes
23Euro-mediumtermnotes
a)Aretypicallyfixed-ratecorporatenotesissuedwithmaturitiesrangingfromlessthanayeartoabouttenyears.
b)Aretypicallyfixed-ratecorporatenotesissuedwithmaturitiesrangingfromthreeyearstoabouttenyears.
c)Aresoldjustlikebondsintheprimarymarket
d)Noneoftheabove
Answer:
a)
Floating-RateNotes
24Findtheyieldtomaturityforthisfloatingratenote:
Theresetdateistoday;couponsarepaidannuallyaccordingtotheformula(LIBOR+¼percent);sinceissuance,therehasnotbeenachangeintheissuer’screditrating.ThebondhastenyearstomaturityandLIBOR=3.5percent.
a)3.5%
b)4%
c)3.75%
d)Thereisnotenoughinformationprovidedtomakeadetermination.
Answer:
d)
25Floating-ratenotes(FRN)
a)experienceveryvolatilepricechangesbetweenresetdates
b)aretypicallymedium-termbondswithcouponpaymentsindexedtosomereferencerate(e.g.LIBOR)
c)appealtoinvestorswithstrongneedtopreservetheprincipalvalueoftheinvestmentshouldtheyneedtoliquidatepriortothematurityofthebonds
d)b)andc)
Answer:
d)
26Onaresetdate,floating-ratenotes
a)experienceveryvolatilepricechanges
b)marketpricewillusuallygravitatetowardpar
c)marketpricewillusuallygravitatetowardpar,unlesstheborrowerscreditratinghasdeclined
d)b)andc)
Answer:
d)
27Floating-ratenotes
a)Areaformofadjustableratebond
b)Havecontractuallyspecifiedcouponpayments,thereforetheyarefixedratebonds
c)Alwaystradeatparvalue
d)a)andc)
Answer:
a)
28
Afive-yearFloating-ratenote(FRN)hascouponsreferencedtosix-monthdollarLIBOR,andpayscouponinterestsemiannually.Assumethatthecurrentsix-monthLIBORis6percent.IftheriskpremiumaboveLIBORthattheissuermustpayis1/8percent,thenextperiod’scouponrateona$1,000facevalueFRNwillbe:
a)$29.375
b)$30.000
c)$30.625
d)$61.250
Answer:
c)
Rationale:
.5×(LIBOR+riskpremiumpercent)×$1,000
=.5×(.06+.00125)×$1,000=$30.625
29Aten-yearFloating-ratenote(FRN)hascouponsreferencedtosix-monthpoundLIBOR,andpayscouponinterestquarterly.Assumethatthecurrentsix-monthLIBORis3percent.IftheriskpremiumaboveLIBORthattheissuermustpayis1/8percent,thenextperiod’scouponrateona£1,000facevalueFRNwillbe:
a)£31.25
b)£15.625
c)£30.625
d)£7.8125
Answer:
d)
Rationale:
¼×(LIBOR+riskpremiumpercent)×parvalue
=.25×(.03+.00125)×£1,000=£7.8125
Equity-RelatedBonds
30Thefloorvalueofaconvertible
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Ch012InternationalBondMarketdoc