5 currency diversi 64257 cation why would a u s 64257 rm consider issuing bonds deno 1319228

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?