A form of funds available to non-Canadian borrowers, known as Maple bonds, were developed. Why are attractive to investors?
A) Canadian investors receive an interest adjustment allowing for a lower price on the bonds.
B) Canadian investors are rated AAA and more likely to support their obligations.
C) Canada as a stable efficient capital market allows foreign borrowers to more easily interact with the US regulators.
D) The Canadian capital pool is large enough to warrant the costs of establishing these programs.
E) Foreign borrowers find that Canada has low interest rates and, for some, their currencies have appreciated against the Canadian dollar.
Correct Answer:
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