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What is the difference between Eurobond and a foreign bond? Why do two types of international bonds exist?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 9Q

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Critically discuss the differences between foreign bonds and Eurobonds and elaborate on the reasons why the Eurobonds dominate the international bond market.
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Critique the distinctions between foreign bonds and Eurobonds, and explain why the Eurobonds have become the most popular form of international bond financing.
. Which of the following is not classified as a financial instrument? Convertible bond C. Loan receivable Foreign currency contract D. Warranty provision
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Question 1: Discuss the differences between Eurobond and foreign bond with examples.Plz explain it properly
A Eurobond is a Group of answer choices A. bond payable in the borrower's currency and sold inside the borrower's country. B. bond payable in the investor's currency but sold inside the borrower's country. C. bond payable in the borrower's currency but sold outside the borrower's country. D. bond payable in the investor's currency but sold outside the borrower's country.
How is a Eurobond different from a bond issued in Asia that is denominated in dollars?
a) What is the difference between a Foreign Bond and a Eurobond? Explain you answer with examples. b) Define Equity, Debt and Derivative. c) Describe the main types of non-bank Financial Institutions (FI). Give two examples of non-bank FI’s that are allowed to accept deposits.
In addition to default risk, what key risk do investors in foreign bonds face? Explain.
Which of the statement is incorrect? i) Eurobond is a bond issued by an international investor and sold to borrowers in countries with currencies other than the currency in which the bond is denominated. ii) Foreign bond is a bond issued in a host country’s financial market, in the host country’s currency, by a foreign borrower. iii) Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. iv) In contrast, a foreign bond is a bond issued in a host country’s financial market, in the foreign currency, by a foreign borrower.