A large U.S. MNE is looking to raise capital in Europe. The company wishes to avoid many of the regulatory constraints found in an issue of debt in the U.S. markets, wants to attract foreign investors, but also wants the issue to be denominated in dollars. The firm should issue a ________.

Question

Quizplus · Accepted Answer

A Eurobond is a bond issued outside of the issuer's home country, but denominated in the issuer's home currency. This would allow the U.S. MNE to avoid regulatory constraints found in the U.S. market and attract foreign investors while also issuing the bond in dollars.

A Large US