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

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When U.S. firms issue bonds in a foreign currency, they must convert dollars to that currency to make coupon payments. If the dollar weakens, it takes more dollars to buy the same amount of foreign currency, increasing dollar outflows.

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