A U.S.-based MNC whose foreign subsidiary generates large earnings may be able to offset exposure to exchange rate risk by issuing bonds denominated in the subsidiary's local currency.
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Q1: If a U.S.-based MNC issues a bond
Q2: Floating rate bonds are often issued with
Q4: If an MNC borrows funds in a
Q5: Some MNCs use a country's yield curve
Q6: If an MNC uses a long-term forward
Q7: A limitation of interest rate swaps is
Q8: Since yield curves are identical across countries,
Q9: A parallel loan represents simultaneous loans provided
Q10: Parallel loans are particularly attractive when an
Q11: The global trade association that is credited
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