1. A bond that makes interest payments by giving bondholders more units of the same bond issue are said to be making:

Deferred Payments	Payments in Kind
Sinking Fund Payments	none of the above

1. A Japanese Company issues bonds that make coupon payments in Japanese Yen, but pays the face value in Euros. This type of bond is called a:

currency option bond	Yen-Dollar bond
Japanese Government Bond	None of the above

1. A U.S. company wishes to issue commercial paper denominated in U.S. dollars. They have the choice of issuing in the U.S. commercial paper market or in the Eurocommercial paper market. They are told that their interest rate will be 5% in either market. If this is true, which market provides the lowest cost of financing, all other things being equal?

U.S. Commercial Paper Market	Eurocommercial Paper Market
They are the same.