U.S. COMMERCIAL PAPER IS ISSUED ON AN UNCOMMITTED BASIS. WHAT POTE...

70. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
70. U.S. commercial paper is issued on an uncommitted basis. What potential problem does that present to MNCs issuing U.S. commercial paper? a. U.S. commercial paper is debt instruments issued by an MNC with no guarantee that the funds borrowed through the issue will be repaid. b. U.S. commercial paper is debt instruments issued by an MNC without any guarantee that all of the debt instruments will be purchased, so the issuing MNC does not know before the issue if the full amount of the money it needs will be raised. c. U.S. commercial paper is debt instruments issued in a variety of currencies, so the purchaser of the commercial paper does not know the currency risk that will be involved in the investment. d. U.S. commercial paper is debt instruments issued with floating interest rates, so the purchaser of the commercial paper does not know the interest rate at which their investment will be repaid.