If a Japanese firm sold pound-denominated bonds in England, its bonds can be designated as foreign bonds.
Group of answer choices
True
False
The correct answer is True
Foreign bonds are generally issued in the domestic market of the
foreign country. The currency shall also be that of the foreign
county. These bonds are generally issued in order to raise capital
funds.
Where a foreign (Japanese) company or firm issues / sells pound
denominated bonds in England then such type of bonds shall be a
Foregin Bond.
The British investors buying these bonds do not take up the
currency risk but they do take up country or political risk.
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