PART A: Straight bonds and floating rate notes are two basic types of bonds that may be issued into both the euro markets 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 euro markets. 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 euro commercial paper (ECP) into the London euro note 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]