Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply. If there is There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market. The currency in that foreign market is expected to appreciate against the MNC's home currency. There is a lower interest rate in that foreign country. The MNC intends to finance a project in a specific country and a specific currency. for a bond, a bondholder may not be able to sell a bond at the desired time or may have to decrease the
Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply. If there is There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market. The currency in that foreign market is expected to appreciate against the MNC's home currency. There is a lower interest rate in that foreign country. The MNC intends to finance a project in a specific country and a specific currency. for a bond, a bondholder may not be able to sell a bond at the desired time or may have to decrease the
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply.
There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market.
The currency in that foreign market is expected to appreciate against the MNC's home currency.
There is a lower interest rate in that foreign country.
The MNC intends to finance a project in a specific country and in a specific currency.
If there is
for a bond, a bondholder may not be able to sell a bond at the desired time or may have to decrease the
price of their bonds in order to sell them. The risk of this occurrence is known as
risk.
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