Which of the following statements concerning a eurodollar deposit is correct?
A) Eurodollar deposits tend to pay yields below all marketable securities with similar maturities owing to their low risk.
B) Eurodollar deposits are highly liquid and pay interest only at maturity; hence the yield is higher than on marketable securities.
C) Eurodollar deposits tend to provide yields above nearly all marketable securities with similar maturities owing to the higher FX risk.
D) Eurodollar deposits tend to provide yields above nearly all marketable securities with similar maturities owing to the lack of a secondary market.
Correct Answer:
Verified
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