A "foreign bond" issue is

a. one denominated in a particular currency but sold to investors in national capital markets other than the country that issued the denominating currency.

b. one offered by a foreign borrower to investors in a national market and denominated in that nation's currency.

c. for example, a German MNC issuing dollar-denominated bonds to U. S. investors.

d. both b and c

Question

Foster

Business

5 October, 09:56

A "foreign bond" issue is

a. one denominated in a particular currency but sold to investors in national capital markets other than the country that issued the denominating currency.

b. one offered by a foreign borrower to investors in a national market and denominated in that nation's currency.

c. for example, a German MNC issuing dollar-denominated bonds to U. S. investors.

d. both b and c

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Answers (1)

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Skyla · Answer 1

d. both b and c

A foreign bond is when a foreign entity issues a bond in a local market and in local currency so for example if a Italian company issued a bond to borrow money from American markets, and the bond was issued in USA and it's currency was dollars then it would be classified as a foreign bond so in this case both B and C are correct because a German MNC issuing dollar denominated bonds is an example of a foreign entity issuing a bond in a local market denominated in local currency, and a bond issues by a foreign borrower to investors in national market and denominated in that nation's currency is also an example of a foreign bond