Question

1(a). (TRUE or FALSE?) Eurobonds are preferred stocks that are denominated in British Pounds and hold by the U.S. government.

1(b). (TRUE or FALSE?) An domestic bond is a bond sold in countries other than where the corporate headquarters of the issuing company is located.

Answer 1

1(a). (TRUE or FALSE?) Eurobonds are preferred stocks that are denominated in British Pounds and hold by the U.S. government.

ANSWER: FALSE

Euro Bonds, are Bonds issued or traded in a country and denominated in a currency other than the home currency. In other words it means that the bond is issued in a certain currency, but operates away from the jurisdiction of the central bank that issues that currency.

1(b). (TRUE or FALSE?) An domestic bond is a bond sold in countries other than where the corporate headquarters of the issuing company is located.

Answer: FALSE.

Domestic Bonds are bonds issued in the country and currency in which they are traded.