1. Perine Co. buys raw materials from New Zealand in NZ Dollars. It also has significant exports to Japan and invoices these in Yen. Perine has a need to issue bonds to finance a small expansion. If it wanted to reduce its currency risk, it should issue these bonds in which currency? Why?
2. Assume a US MNC issues bonds denominated in Argentine Pesos. What would happen to the dollar cost of interest payments if the Peso strengthens?