- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 5. Fixed-Income Markets for Government Issuers
- Subject 1. Sovereign Bonds
CFA Practice Question
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
Correct Answer: B
The national government will most likely issue bonds in foreign currency.
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. |