Because bonds denominated in foreign currencies rarely have lower yields,U.S.corporations rarely consider issuing bonds denominated in those currencies.

Question

Quizplus · Accepted Answer

This statement is false. U.S. corporations may issue bonds denominated in foreign currencies if they believe they can obtain a lower cost of borrowing compared to issuing in U.S. dollars. However, they must also consider currency risk and the potential for fluctuations in the exchange rate between the foreign currency and the U.S. dollar.

Because Bonds Denominated in Foreign Currencies Rarely Have Lower Yields,U