The shorter length of time in bringing a Eurodollar bond issue to market,coupled with the lower rate of interest that borrowers pay for Eurodollar bond financing in comparison to Yankee bond financing,are two major reasons why the Eurobond segment of the international bond market is roughly ________ the size of the foreign bond segment.

Question

Quizplus · Accepted Answer

The Eurobond market is significantly larger than the foreign bond market, often cited as being roughly four times the size. This is attributed to the advantages of Eurodollar bonds, such as quicker issuance times and lower interest rates for borrowers compared to Yankee bonds, which are a type of foreign bond.

The Shorter Length of Time in Bringing a Eurodollar Bond