PART A: Straight bonds and floating rate notes are two basic types of bonds that may be issued into both the euromarkets and the US capital markets. Explain the basic features of a bond and differentiate between a straight bond and a floating rate note. [2 marks]

PART B: Novak Ltd is seeking to establish standby facility in the euromarkets. Explain the CFO of Novak, the structure and purpose of a standby facility. Identify and briefly explain risks that need to be considered by Novak when establishing a standby facility. [3 marks]

PART C: Woodside Ltd is to issue eurocommercial paper (ECP) into the London euronote market. The 90-day ECP issue has a face value of USD100 million and a yield of 5.75 per cent per annum. Calculate the amount raised on issue by Woodside Ltd. [2 marks]