A Japanese firm issued and sold a pound-denominated bond in the United Kingdom. A U.S. firm issued bonds denominated in dollars but sold the bonds in Japan. Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Eurobonds are bonds issued in a currency not native to the country where it is issued. The U.S. bond is a Eurobond because it is issued in dollars but sold in Japan. The Japanese bond is a foreign bond because it is issued in pounds and sold in the UK.

A Japanese Firm Issued and Sold a Pound-Denominated Bond in the United