3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points)

Market of Issue can take the following values:

Domestic: a bond is issued in the US 4

Global: a bond is issued in the US and foreign markets

Eurobond: a bond denominated in USD is issued in the foreign market.

Need to estimate the probabilities that a bond with the following characteristics is issued in each market:

maturity: 10 years

coupon: 2.5%

amount: $750,000,000

currency: US dollars

seniority: senior unsecured

Moody's (Issue) credit rating: Aa2

sector: Electronics

domicile: USA

convertible: no

callable: yes

puttable: no.

In the analysis, estimate multinomial logit regression model and briey discuss the determinants of Market of Issue. According to the analysis, what is the most likely market of issue of this bond?