Which of the following statements is NOT CORRECT?
A) foreign bonds and eurobonds are two important types of international bonds.
B) foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
C) the term eurobond applies only to foreign bonds denominated in u.s. currency.
D) a foreign bond might pay a higher nominal interest rate than a u.s. bond.
E) any bond sold outside the country of the borrower is called an international bond.

Question

Quizplus · Accepted Answer

The statement "the term eurobond applies only to foreign bonds denominated in u.s. currency" is not correct. Eurobonds are bonds issued in a currency other than the currency of the country where it is issued. It can be denominated in any currency, not just the US dollar.

Which of the Following Statements Is NOT CORRECT