A US investor has the opportunity to invest in domestic bonds or won-bonds. The domestic US bonds have a face value of $1000, pay semi-annual coupons of 10% and have a maturity of three years. The won-bonds pay annual coupons of 14%, have a face value of 1000, and a maturity of three years. Calculate which bond gives the US investor the better return.

From the US investors perspective, discuss the advantages and disadvantages of investing in eurobonds, as opposed to the domestic bonds, or won-bonds described above.