15-41 The advantage to the lender of a Brady bond versus a loan to a foreign country is that U.S.Treasury bonds serve as collateral for Brady bonds.

Name: 15-41 The advantage to the lender of a Brady bond versus a loan to a foreign country is that U.S.Treasury bonds serve as collateral for Brady bonds.
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Brady bonds are issued by a foreign country and backed by U.S. Treasury bonds, providing collateral to the lender. This reduces the credit risk for the lender compared to a loan without collateral.

15-41 the Advantage to the Lender of a Brady Bond