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How is international financial management different from domestic financial management?
Answer: There are three main dimensions that set separately international finance from domestic finance. They are:
a) Foreign exchange and political risks,
b) Market imperfections, and
c) Expanded opportunity set.
2. Suppose a 12% coupon bond sells at par today; and three years from today, the required rate on the same bond is 8%. What is the coupon rate on the bond today and what will it be
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