ABC (US Firm) needs to raise USD1 billion or equivalent to acquire XYZ (US Firm). Therefore, ABC firm is trying to decide between the following three types of bond issues. Types of Bonds Coupon Rate (p.a.) No of Coupon Payments in a Year Initial Fees (at t=0) One-off Debt Maturity Exchange Rate (per USD) [Hint] Possible Internal Rate of Return (IRR) p.a. U.S. bond 6.75% 2 0.95% 3.554% 4.554% Euro- Eurobond 6.88% 1 0.55% 3 Euro 0.75 6.090% | 7.090% Samurai Bond 4% 1 0.30% 2 Yen 80 4.159% 5.159% Required: a) Assuming all else is equal, which is the least expensive bond issue solely based on All-in cost for ABC firm? Please show your full workings. [Hint: Compare the annualized yield to maturity (YTM) for each bond issue. Use the possible internal rate of return given above to speed up your calculation.] (7 marks) b) Please name the three unique characteristics of Eurobonds in not more than three sentences