What is sovereign risk and what is the difference between rescheduling and repudiation? What is total debt service ratio and how is it calculated? See if you can find a more recent number than your textbook for the total debt service ratio of a country. See if you can also find an example of a country, or countries, that Western banks currently have exposure to 12. What is the difference between book value accounting and market value accounting? What is duration and how is it useful when it comes to figuring out interest rate sensitivity? What are zero-coupon bonds and what do they allow securities firms and investors to do? What are the characteristics of consol bonds when it comes to duration and maturity? 13. A six-year Eurobond has a 6% coupon and 6% yield. What is the modified duration if duration equals 5.20 years? What is the dollar duration for this bond if its par value is $1,000 ? 14. Determine the duration of a Eurobond with that matures in five years, has an annual coupon of 6%, and a face value of $1,000. What would the duration be if the annual coupon is 6% and the current yield is 10%