Tag a. Should LEXCO finance its production with yen and leave itself open to the exchange rate risk? Explain.

Bond Financing Analysis

ALTEC Inc. can issue bonds in either U.S. dollars or in Swiss francs. Dollar-denominated bonds would have a coupon rate of 15%; Swiss franc–denominated bonds would have a coupon rate of 12%. Assuming that ALTEC can issue bonds worth $10,000,000…