Question: Assume that a U.S. based multinational firm borrows funds through a bond offering issued in a foreign market that requires all payments of interest and

Assume that a U.S. based multinational firm borrows funds through a bond offering issued in a foreign market that requires all payments of interest and principal denominated in that foreign currency. Answer the following questions assuming that the foreign currency appreciates over time relative to the U.S. dollar.

Will the periodic interest payments increase or decrease over time as expressed in USD?

What would happen to the balance sheet presentation of the bond offering as presented on the U.S. based multinational firm's balance sheet?

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