16. What factors should be considered by a U.S. firm that plans to issue a floating rate bond denomina in a foreign currency? 17. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed rate Eurobond? Explain.

16. What factors should be considered by a U.S. firm that plans to issue a floating rate bond denomina in a foreign currency? 17. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed rate Eurobond? Explain.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter18: Long-term Debt Financing

Section: Chapter Questions

Problem 1QA

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16. What factors should be considered by a U.S. firm that plans to issue a floating rate bond denomina
in a foreign currency?
17. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed rate
Eurobond? Explain.

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