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
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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.
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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