Tompkinson's PLC., a British company, issues a bond in U.S. dollars in the United States which is intended for U.S. investors. Which of the following best describes this bond?

Question

Quizplus · Accepted Answer

A Yankee bond is a bond denominated in U.S. dollars and issued by a foreign entity in the U.S. market. Therefore, since Tompkinson's PLC is a British company issuing a bond in U.S. dollars in the United States for U.S. investors, it is a Yankee bond. A domestic bond is issued and sold within the issuer's home country, a Eurobond is issued and sold outside of the issuer's home country in different currencies, and a global bond is a bond issued simultaneously in multiple countries and currencies.