Bonds issued by the U.S. Treasury are referred to as benchmark bonds because: Select one: a.All bonds from national governments are labeled as benchmark bonds. b.They are the closest thing to a risk-free bond. c.They are always purchased for a premium. d.All bonds from the U.S. government have the same rate of interest

Bonds issued by the U.S. Treasury are referred to as benchmark bonds because: Select one: a.All bonds from national governments are labeled as benchmark bonds. b.They are the closest thing to a risk-free bond. c.They are always purchased for a premium. d.All bonds from the U.S. government have the same rate of interest

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter18: Long-term Debt Financing

Section: Chapter Questions

Problem 1QA

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US treasury bonds carry the full faith and credit of the us government, there fore they are considered to be investments that are almost risk free. True or false?
National governments issue debt securities known as sovereign bonds, which can be denominated in either local currency or global reserve currencies, like the U.S. dollar or euro. (source (Links to an external site.)Links to an external site.). For this discussion question, first define what these bonds are. Why are these issued? Then discuss the issues that can arise when investors invest in these types of bonds. What are the advantages and disadvantages of these bonds? Are there unique issues that can arise only with this type of bond? Would you invest in sovereign bonds?
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