Consider you are a cash manager of a multinational corporation (MNC) based in the United States. One...

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Consider you are a cash manager of a multinational corporation (MNC) based in the United States. One of your responsibilities is to gain the highest yield for your treasury cash. Visit theMarkets: United States Rates & Bonds(Links to an external site.)web page and click on Germany to review its interest rates. Select Germany to invest in for one year. Describe why you chose that country and your expected yield for the next year.

Sumit · Accepted Answer

I have chosen Germany due to the following reasons:
(a). The risk in the Government Bonds of Germany is low: The risk in the government bonds is based on the following factors:
(i). Default Risk: Default risk refers to the risk that the country will default on the payment of the interest on the bonds or the principal repayment of the bonds. Since the United States of America has a higher Debt to GDP ratio and also the higher deficit as well in comparison to Germany.
(ii). Political Situation:

Consider you are a cash manager of a multinational corporation (MNC) based in the United States. One of your responsibilities is to gain the highest yield for your treasury cash. Visit theMarkets:...

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