1. What is project finance?
2. Suppose a multinational corporation is particularly worried about ethnic warfare in a few countries in which it is considering investing. Do country risk ratings have information on this particular risk?
3. Can Panama issue a bond denominated in dollars at the same terms (that is, at the same yield) as the
U.S. government? Why or why not?
4. What stops governments from defaulting on loans or bonds held by foreigners?
5. What is a Brady bond?
6. How is a political risk probability related to a country spread?
7. What are Cetes? What are Tesobonos?
8. What are the three main types of political risk covered by political risk insurance?
9. What are some organizations or firms that provide political risk insurance?
10. How is it possible to embed political risk insurance in a capital budgeting analysis?