Desribe the international versions of bonds in brief. Focus clearly on the differences between them in terms of availability and currency of denomination.
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- Critique the distinctions between foreign bonds and Eurobonds, and explain why the Eurobonds have become the most popular form of international bond financing.Critically discuss the differences between foreign bonds and Eurobonds and elaborate on the reasons why the Eurobonds dominate the international bond market.Bonds often have embedded optionality with different exercise styles. Distinguish between an American-Style Call, European-Style Call, and Bermuda-Style Call bonds and impact of the stated optionality on the yields of the bonds.
- Discuss the advantages and disadvantages of a dual currency bond.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.Briefly define each of the major types of international bond market instruments, noting their distinguishing characteristics. d) Zero-coupon bonds e) dual-currency bond f) Composite currency
- Briefly define each of the major types of international bond market instruments, noting their distinguishing characteristics. a) Straight fixed rate b) Floating-rate notes (FRNs) c) convertible bond d) Zero-coupon bonds e) dual-currency bond f) Composite currencyIn addition to default risk, what key risk do investors in foreign bonds face? Explain.A dual-currency bond makes coupon interest payments in one currency and the principal repayment at maturity in another currency. Select one: True False
- The International Financial Reporting Standards require the use of ________. A. any method of amortization of bond premiums B. the straight-line method of amortization of bond discounts C. the effective-interest method of amortization of bond premiums and discounts D. any method approved by US GAAPDiscuss the similarities and differences between a bond repurchase agreement anda sale and buyback transaction. How do repos done by securities dealers differ from those done by central banks?What is sovereign risk and what is the difference between rescheduling and repudiation? What is total debt service ratio and how is it calculated? Find the total debt service ratio of a country. See if you can also find an example of a country, or countries, that Western banks currently have exposure to.