Look at the JAL FX loss scenario in the Additional Text Readings where JAL lost as much as or more in FX than the $800 million value of the planes it was purchasing. Then calculate JALs cost if it had used a different type of hedge, borrowing US$ to buy U.S. government bonds that it then cashed as each plane was purchased. Generally one can borrow up to 95% of the value of U.S. government bonds with the borrowing cost normally about .25% or 25 basis points above the yield on the bonds. Assume that the yield on the bonds is 8% and that they borrow for the full 10 years noted in the case.