Which of the following statements are correct concerning Eurodollar bonds?
I. Initial offerings of Eurodollar bonds are sold in U.S. bond markets.
II. Eurodollar bonds are denominated in dollars.
III. The Eurodollar market is dominated by foreign-based investors.
IV. Eurodollar bonds originate outside the United States.
A) II and III only
B) I and IV only
C) II, III and IV only
D) I, II and IV only

Question

Quizplus · Accepted Answer

Eurodollar bonds are denominated in dollars (II), the market is dominated by foreign-based investors (III), and they originate outside the United States (IV). Initial offerings are not sold in U.S. bond markets, making statement I incorrect.

Which of the Following Statements Are Correct Concerning Eurodollar Bonds