Answer 1
Corporate bonds can be defined as the bonds issued by corporations to raise their capital for their daily operations. Different countries have different rules on the way corporate bonds are auctioned to the public. Even though there are some similarities. In America the par value of shares is not expected to be below $1,000, this is not so in foreign nations. In USA, there is transparency in the sale of the bonds that are not always so in other nations. Though there are these differences, there are also similarities such as in all nations shares are entitled to coupons, have maturity dates, and are valued at a certain value of money.Answer 2
The health of the bank is essential to its customers and any other person who wants to have operations with the bank. A healthy bank is secure to deal with and gives promise to future progress. For a bank to be healthy it must possess these characteristics. First, it must be insured with another financial institution. This means that, in case of a financial downturn in the bank, the insurer will be in a position to replenish the banks financial status. Secondly, the bank should have a reserve that is within the acceptable limits of the federal insurance limits. This means that the bank has enough funds that will help it remain operational at all times. Thirdly, the bank must have enough assets to win the customer loyalty and trust in its future existence and operations. Fourth, the bank must have reasonable interest rates in case of a loan. Since life is full of uncertainties, the bank should have reasonable rates of interest in case a customer takes a loan. It is these principles that make the bank enticing to bank with always.Answer 3
Some of the things that an MNC CEO has to consider when seeking for financing of the corporation is many. Some financers require the corporation to have a collateral when enquiring for financing. Therefore, the MNC must make sure that it has enough collateral. The corporation must also ensure that it has solid financial basis so that it will be in an appealing position to the financial for considerations. The MNC must also consider the balance of payments between different nations. The fluctuation in the BOP will lead to loss of all or some of the finances or at times have to pay very high interest rates.Additional factors to consider are the political stability of the nation, bankruptcy probability and exchange risk.Answer 4
Some of the reasons that are similar to USA, Mexico and Asian crisis is that there was a rise in the US interest rates. This made the borrowing by the commercial banks and the individuals difficult. The intrusion of the international Monetary Fund was also another contributing factor in these three countries. The IMF has control or influence over very many nations' financial situations. Another reason is that the World Bank also poked its nose in the financial situations to these countries. It is worth identification that the financial crisis in these countries took place at almost the same time. This shows that the crisis could have been caused by some financial restrictions by the IMF and the World Bank.There might be new reasons such as the constant devaluation of the currency in the countries, the difference in the rate of technological change and the balance of payments with other nations.
