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An exporter in Germany is planning the issuance of bonds in USD. Identify the reasons justifying the exporter s decision. A . The interest rate
An exporter in Germany is planning the issuance of bonds in USD. Identify the reasons justifying the exporters decision. A The interest rate is very low in USD, and this is a financial strategy to hedge the transaction exposure. B The interest rate is very low in EUR, and the exporter expects the EUR to depreciate against USD. C The interest rate is very low in USD, and this is a financial strategy to hedge both the transaction and the translation risk exposure. D The interest rate is very low in USD, and the exporter expects the USD to appreciate against EUR.
An exporter in Germany is planning the issuance of bonds in USD. Identify the reasons justifying the exporters decision.
A The interest rate is very low in USD, and this is a financial strategy to hedge the transaction exposure.
B The interest rate is very low in EUR, and the exporter expects the EUR to depreciate against USD.
C The interest rate is very low in USD, and this is a financial strategy to hedge both the transaction and the translation risk exposure.
D The interest rate is very low in USD, and the exporter expects the USD to appreciate against EUR.
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