Issue floating rate bond denominated in foreign currency

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Reference no: EM131349070

1. a. What factors should be considered by a U.S. firm that plans to issue a floating rate bond denominated in a foreign currency?

b. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed rate Eurobond? 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?

Reference no: EM131349070

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