Answered: a) What is the difference between a…

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Finance

a) What is the difference between a Foreign Bond and a Eurobond? Explain you answer with examples.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter18: Long-term Debt Financing

Section: Chapter Questions

Problem 1ST

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Concept explainers

International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.

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a) What is the difference between a Foreign Bond and a Eurobond? Explain you answer with examples.

b) Define Equity, Debt and Derivative.

c) Describe the main types of non-bank Financial Institutions (FI). Give two examples of non-bank FI’s that are allowed to accept deposits.

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A Eurobond is a Group of answer choices A. bond payable in the borrower's currency and sold inside the borrower's country. B. bond payable in the investor's currency but sold inside the borrower's country. C. bond payable in the borrower's currency but sold outside the borrower's country. D. bond payable in the investor's currency but sold outside the borrower's country.
Which of the statement is incorrect? i) Eurobond is a bond issued by an international investor and sold to borrowers in countries with currencies other than the currency in which the bond is denominated. ii) Foreign bond is a bond issued in a host country’s financial market, in the host country’s currency, by a foreign borrower. iii) Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. iv) In contrast, a foreign bond is a bond issued in a host country’s financial market, in the foreign currency, by a foreign borrower.
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. Which of the following is not classified as a financial instrument? Convertible bond C. Loan receivable Foreign currency contract D. Warranty provision
Which one of the following is not a money market instrument? A. Treasury bill B. Negotiable certificate of deposit C. Commercial paper D. Treasury bond E. Eurodollar account Please explain all points without plagiarism Upvote ?sure
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Sovereign debt (issued bonds) are typically considered as proxies for risk free. 1. Discuss the reasons why sovereign debt may not be risk free. 2. Why might credit ratings agencies give different credit ratings to sovereign debt issued by the same country, depending on coupons denominated in domestic or foreign currency.
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The term foreign bond market refers to trading in: A. issues sold in the borrower's country in a currency of another country. B. none of the above. C. issues sold in one country and currency by a borrower from another country. D. issues sold in one country in a currency of another country by a borrower from another country.