Floating rate bonds a What factors should be considered by a UK firm that plans to issue

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Floating rate bonds a What factors should be considered by a UK 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 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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International Financial Management

ISBN: 9780314430298

2nd Edition

Authors: Jeff Madura, Roland Fox

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Question Posted: Oct 30, 2024 05:00 AM

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Floating rate bonds a What factors should be considered by a UK firm that plans to issue

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International Financial Management

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