a. What factors should be considered by a U.S. firm that plans to issue a floating rate
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b. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed rate bond? Explain.
c. How would an investing firm differ from a borrowing firm in the features (i.e., interest rate and currency’s future exchange rates) it would prefer a floating rate foreign currency–denominated bond to exhibit?
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a A US firm should consider the interest rate for each possible currency as well as forecasts of the ...View the full answer
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