1. A U.S. firm has received a large amount of cash inflows periodically in Swiss francs as a result of exporting goods to Switzerland. It has no other business outside the U.S. It could best reduce its exposure to exchange rate risk by: a. Issuing Swiss franc-denominated bonds b. Purchasing Swiss franc-denominated bonds c. Purchasing US dollar-denominated bonds d. Issuing US dollar-denominated bonds 2. Eurobonds are: a. Bonds denominated in a particular currency but sold to investors in national capital markets other than the country that issued the denominated currency b. Bonds denominated in a particular currency but sold to investors in the same country that issued the denominated currency c. Bonds issued in European capital markets d. None of the above 3. A bond that pays a certain coupon for several periods plus the principal at the end of maturity is an example of a: a. Equity related bond b. Straight fixed rate bond c. Dual currency bond d. Variable rate bond