5. Currency Diversiﬁcation. Why would a U.S. ﬁrm consider issuing bonds denominated in multiple currencies?
6. Financing That Reduces Exchange Rate Risk. Kerr, Inc., a major U.S. exporter of products to Japan, denominates its exports in dollars and has no other international business. It can borrow dollars at
9 percent to ﬁnance its operations or borrow yen at 3 percent. If it borrows yen, it will be exposed to exchange rate risk. How can Kerr borrow yen and possibly reduce its economic exposure to exchange rate risk?