Question

Bonds denominated in ________ and issued by ____________ at __________ rates make up the largest part of outstanding international bonds. Select one: a. US dollars, financial institutions, fixed b. US dollars, non-financial corporations, flexible c. euros, non-financial corporations, flexible d. euros, financial institutions, fixed

Answer 1

An international bond is a debt investment that is issued in a country by an non domestic entity. They interest at specific intervals and pay the principal amount to the buyer on maturity . It is issued in currency that is not doemstic to the buying person/investor. From the persepective of person resident in US an international bond is one which is issued by government in other countries and denominated in other currency. International bonds include Euro Bond, Foreign bond,and global bonds.

Value of bond fluctuates depending on the economic conditions, exchange rate and are subject to currency risk as it is subject to different taxation and other regulatory formalities.

Answer to question is option a

Bonds denominated in US Dollars and issued by Financial institutions at fixed rate make up the largets part of oustanding international bonds.