What is the total cash paid for this bond purchase

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Reference no: EM13868325

1. You purchase a Eurobond, at a quoted price of 102%. The annual coupon is 6%, and we are exactly one month after the past coupon date. You buy 100,000 EUR nominal value of the bond. What is the total cash paid for this bond purchase?

a. € 102,000

b. € 102,500

c. € 100,500

2. From an US investor's perspective, investing in an emerging market bond is risky because of:

(I) Interest rate risk

(II) Currency risk

(III) Higher correlation risk

a. (I) & (II)

b. (I) , (II), & (III)

c. (II) & (III)

Reference no: EM13868325

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