Assuming that your objective is to design the perfect bond for each of these firms, choose the bond that you would use to fund each of the following companies. Pick one of each of the following choices. Write the right answer for each firm and very briefly explain your choices.

Maturity: Short term or Long term

Currency: Dollar or Mixed Currency

Fixed or Floating: Fixed rate or Floating rate

Straight or Convertible: Straight or Convertible

(Sample answer: Long term because ., Mixed currency because , Fixed rate because , Convertible because)

A steel company with heavy infrastructure investments, no pricing power and stable earnings, with all of its operating earnings in the United States (1.5 points)

A mature consumer product company whose primary asset is its brand name, with substantial pricing power and revenues spread over all parts of the globe (1.5 points)

A technology company with products that become obsolete quickly, U.S. dollar cashflows , with a high expected growth rate, in a relatively non-competitive industry (1.5 points)