Asked by Makaylee Wright on May 14, 2024
Verified
A foreign bond is identical to domestic bonds except that it is issued by a foreign firm or government.
Foreign Bond
A bond denominated in the currency of the country in which it is sold, but issued by a foreign borrower.
Domestic Bonds
Domestic bonds are debt securities issued within a country by domestic entities, including the government, cities, or corporations, and are denominated in the country's own currency.
Foreign Firm
A company that is based in one country while conducting business operations in one or more other countries.
- Differentiate among various financial instruments and markets, including foreign bonds, Eurobonds, and Eurodollar transactions.
Verified Answer
PY
Princess YvonneMay 18, 2024
Final Answer :
True
Explanation :
A foreign bond is indeed issued by a foreign firm or government, but other than that, it is similar to domestic bonds in terms of structure and characteristics.
Learning Objectives
- Differentiate among various financial instruments and markets, including foreign bonds, Eurobonds, and Eurodollar transactions.