If U.S. firms issue bonds in ____, the dollar outflows to cover fixed coupon payments increase as the dollar ____.

Name: If U.S. firms issue bonds in ____, the dollar outflows to cover fixed coupon payments increase as the dollar ____.
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Question

​If U.S. firms issue bonds in ____, the dollar outflows to cover fixed coupon payments increase as the dollar ____.

Quizplus · Accepted Answer

When U.S. firms issue bonds in a foreign currency and the dollar weakens, the cost in dollars to cover the fixed coupon payments in the foreign currency increases, because more dollars are needed to buy the foreign currency to make the payments.

​If US Firms Issue Bonds in ____, the Dollar Outflows to to Cover

If US Firms Issue Bonds in ____, the Dollar Outflows to to Cover