a sovereign bond has a maturity of 15 years. The bond is best described as a:

Question

Quizplus · Accepted Answer

A sovereign bond is a type of government bond that is issued by a national government in a foreign currency in order to finance its national budget. Since it has a fixed maturity of 15 years, it is not a perpetual bond. Also, it pays periodic interest payments and has a face value, so it is not a pure discount bond. Therefore, the best description for this bond is a capital market security.

A Sovereign Bond Has a Maturity of 15 Years