1. Which one of the following constitutes a market imperfection and may explain the existence of Multinational firms?

A. Restrictions such as tariffs imposed on cross-border trade of goods and services

B. Limited savings pools in national markets and barriers to access to foreign capital

C. difficulties in transferring technology in arm's length transactions  

D. Comparative Advantage

2. Keith, Inc. has a $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in five years, and have a 5 percent coupon. The current price is 101. What is the yield to maturity?

2.39 percent

5.00 percent

5.12 percent

4.78 percent