Exam 18: Long-Term Financing

The actual financing cost of a U.S.corporation issuing a bond denominated in euros is affected by the euro's value relative to the U.S.dollar during the financing period.

When an MNC financesin a currency that matches its cash inflows using a relatively _______ maturity,the MNC is exposed to __________ risk.

The United States typically has a(n)___________-sloping yield curve,which means that the annualized yields are ________ for short-term debt than for long-term debt.

In a(n)___________ swap,the fixed rate payer has the right to terminate the swap.

An interest rate swap between two firms of different countries enables the exchange of __________ for __________.