What are the differences between Domestic bonds, Foreign bonds, and Euro bonds? Give an example of each.
Domestic bonds: These bonds are issued by the domestic firm in the same country and it is denominated in the domestic currency.
Example: A U.S. firm issuing dollar denominated bonds in the U.S.
Foreign bonds: These bonds are issued by a foreign firm in the country denominated in the loacl currency.
Example: A Japanese firm issuing dollar denominated bonds in the U.S.
Euro bonds: These bonds are issued by foreign entities in the foreign country in the foreign currency. Euro bonds can be issued in many countries simultaneously.
Example: A U.K. firm issuing Euro denominated bonds in the U.S. The same bond can be issued in Japan. The issuer and the currency of denomination is the same in both U.S. and Japan.
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