Export Development Canada issued a bond on March $17,2009.$ The

terms were as follows:

Currency of denomination: Japanese yen $($JPY$)$

Denomination: JPY$100,000,000$

Maturity date: March $18,2019,$ or an optional redemption date Redemption$/$payment basis: Redemption at par value

Interest payment dates: March $18$ and September $18$ in each year Optional redemption dates: The issuer has the right to call the

instruments in whole $($but not in part$)$ at par starting on March $18,$

$2012.$ Interest rate:

Fixed rate for the first three years up to but excluding March $18,2012$: $1\mathrm{.}5\%$

March $18,2012$September $18,2012$: $1\mathrm{.}75\%6-$month JPY LIBORBBA

September $18,2012$March $18,2013$: $1\mathrm{.}75\%6-$month JPY LIBORBBA

March $18,2013$September $18,2013$: $2\mathrm{.}00\%6-$month JPY LIBORBBA

September $18,2013$March $18,2014$: $2\mathrm{.}00\%6-$month JPY LIBORBBA

March $18,2014$September $18,2014$: $2\mathrm{.}25\%6-$month JPY LIBORBBA

September $18,2014$March $18,2015$: $2\mathrm{.}25\%6-$month JPY LIBORBBA

March $18,2015$September $18,2015$: $2\mathrm{.}50\%6-$month JPY LIBORBBA

September $18,2015$March $18,2016$: $2\mathrm{.}50\%6-$month JPY LIBORBBA

March $18,2016$September $18,$ LIBORBBA

September $18,2016$March $18,$ LIBORBBA

March $18,2017$September $18,$ LIBORBBA

September $18,2017$March $18,$ LIBORBBA

March $18,2018$September $18,$ LIBORBBA

September $18,2018$March $18,$ LIBORBBA

$2016$: $2\mathrm{.}75\%6-$month JPY $2017$: $2\mathrm{.}75\%6-$month JPY $2017$: $3\mathrm{.}00\%6-$month JPY $2018$: $3\mathrm{.}00\%6-$month JPY $2018$: $3\mathrm{.}25\%6-$month JPY $2019$: $3\mathrm{.}25\%6-$month JPY

a$.$ What is meant by JPY LIBORBBA?

b$.$ Describe the coupon interest characteristics of this bond.

c$.$ What are the risks associated with investing in this bond if the

investor$$s home currency is not Japanese yen?