Question

If a Japanese firm sold pound-denominated bonds in England, its bonds can be designated as foreign bonds.

Group of answer choices

True

False

Answer 1

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.