Assume U.S. interest rates are significantly higher than German rates. A U.S. firm wanting to issue bonds could achieve a lower financing rate, without exchange rate risk, by denominating the bonds in:
A) dollars.
B) euros and making payments from U.S. headquarters.
C) euros and making payments from a German subsidiary.
D) dollars and making payments from a German subsidiary.
Ans: C) euros and making payments from a German subsidiary.
Business
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