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Basic Question 8 of 9
When there is demand for a sovereign issuer's bonds, but not in the sovereign's local currency, the national government may issue ______.
B. foreign bonds
C. Eurobonds
A. domestic bonds
B. foreign bonds
C. Eurobonds
User Contributed Comments 2
| User | Comment |
|---|---|
| dbedford | I thought a foreign bond was a foreign country issuing a bond in the domestic country's currency. So how is B correct when the people don't want the domestic country's currency? A Eurobond is issued domestically in a foreign country's currency so the answer should be C |
| khalifa92 | its domestic when its issued in the same currency by a company in the same country. but its foreign if issued to a different country in their currency. and if its outside the country of issue in the country of issue's currency; eurobond. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe funding choices by sovereign and non-sovereign governments, quasi-government entities, and supranational agencies
CFA® 2025 Level I Curriculum, Volume 4, Module 5.