1. Multinational financial management requires that
A) the effects of changing currency values be included in financial analyses.
B) legal and economic differences need not be considered in financial decisions because these differences are insignificant.
C) political risk should be excluded from multinational corporate financial analyses.
D) traditional U.S. and European financial models incorporating the existence of a competitive marketplace not be recast when analyzing projects in other parts of the world.
E) cultural differences need not be accounted for when considering firm goals and employee management.
2. Bond pays $90 interest annually, matures after 8 more years, and costs $1,100. in today's market. If interest rates were to rise by 75 basis points, which of the following statements would be correct?
The coupon payable on the bond will increase
The current yield will increase
The yield to maturity will decrease
The yield to call will decrease