A "foreign" bond is a bond
A)sold in the United States by a U.S. company.
B)sold to investors in the local market but issued by a company from some other country.
C)sold in Europe by a U.S. company.
D)sold in Europe by a European company.

Question

Quizplus · Accepted Answer

A foreign bond is issued by a company from some other country but sold to investors in the local market. Therefore, option B is the correct answer. Option A and C do not fit the definition of a foreign bond, as the bond issuer is a U.S. company. Option D describes a Eurobond, which is a type of bond issued in a currency different from the currency of the country where it is issued, but it does not specify if the issuer is a foreign company or not.

A "Foreign" Bond Is a Bond