1. Consider a $2,000 face value bond with a $70 coupon payment and 1 year to maturity. Calculate the current yield, coupon rate and the yield to maturity if the bond is purchased for $1,860.

?(Compound interest?) To what amount will the following investments? accumulate?

a. ?$5,200 invested for 9 years at 11 percent compounded annually.

b. ?$8,200 invested for 8 years at 9 percent compounded annually.

c. ?$770 invested for 12 years at 11 percent compounded annually.

d. ?$19,000 invested for 5 years at 6 percent compounded annually.

$ ___ ?(Round to the nearest? cent.)

2. Which of the following is not one of the more common methods used by MNCs to improve their internal control process?

a. requiring executives to forecast future exchange rates

b. speeding the process by which all departments and all subsidiaries have access to the data that they need

c. establishing a centralized database of information

d. ensuring that all data are reported consistently among subsidiaries