Which of the following statements is true about foreign bonds?

Question

Quizplus · Accepted Answer

Foreign bonds are issued by foreign governments or corporations in their home country and denominated in the currency of that country. Option A is incorrect as the interest rate on foreign bonds may or may not be adjusted annually for inflation depending on the terms of the bond offering. Option C is incorrect as convertible bonds refer to a distinct type of bond that is exchangeable for another security or asset. Option D is incorrect as Eurodebt refers to any bonds denominated in a currency other than that of the country where it is issued. Option E is incorrect as the interest rate on foreign bonds is not adjusted for exchange rate fluctuations but instead reflects the creditworthiness of the issuer and prevailing market conditions.

Which of the Following Statements Is True About Foreign Bonds