2. Lets consider the NKK dual-currency bond shown in Exhibit 7.3. It is a bond quoted in yen at 101%. What would happen to the market price if the following scenarios took place?

   1. The market interest rate on (newly issued) yen bonds drops significantly.

   2. The dollar drops in value relative to the yen.

   3. The market interest rate on (newly issued) dollar bonds drops significantly.

   4. Would you give the same answers if the same bonds were quoted in dollars?

These securities have been sold outside the United States of America and Japan. This announcement appears as a matter of record only NEW ISSUE 22nd January, 2004 NKK Nippon Kokan Kabushiki Kaisha Exhibit 7.3 8 per cent. Dual Currency Yen/U.S. Dollar Bonds Due 2014 Issue Price: 101 per cent of the Issue Amount Issue Amount: Redemption Amount at Maturity: 120,000,000,000 U.S.$110,480,000 International Bond Tombstone Nomura International Limited Prudential-Bache Securities International Mitsubishi Trust & Banking Corporation Yamaichi International Europe) Limited Bankers Trust International Limited Crdit Lyonnais Credit Suisse First Boston Limited Dresdner Bank Aktiengesellschaft EBC Amro Bank Limited Fuji International Finance Limited Generale Bank Kleinwort, Benson Limited Lloyds Merchant Bank Limited Morgan Guaranty Ltd Morgan Stanley International Orion Royal Bank Limited Swiss Bank Corporation International Union Bank of Switzerland (Securities) S.G. Warburg & Co., Ltd. These securities have been sold outside the United States of America and Japan. This announcement appears as a matter of record only NEW ISSUE 22nd January, 2004 NKK Nippon Kokan Kabushiki Kaisha Exhibit 7.3 8 per cent. Dual Currency Yen/U.S. Dollar Bonds Due 2014 Issue Price: 101 per cent of the Issue Amount Issue Amount: Redemption Amount at Maturity: 120,000,000,000 U.S.$110,480,000 International Bond Tombstone Nomura International Limited Prudential-Bache Securities International Mitsubishi Trust & Banking Corporation Yamaichi International Europe) Limited Bankers Trust International Limited Crdit Lyonnais Credit Suisse First Boston Limited Dresdner Bank Aktiengesellschaft EBC Amro Bank Limited Fuji International Finance Limited Generale Bank Kleinwort, Benson Limited Lloyds Merchant Bank Limited Morgan Guaranty Ltd Morgan Stanley International Orion Royal Bank Limited Swiss Bank Corporation International Union Bank of Switzerland (Securities) S.G. Warburg & Co., Ltd