Question 14 Which of the following statements is NOT CORRECT? Answer Any bond so

Question

Question 14

Which of the following statements is NOT CORRECT?
Answer Any bond sold outside the country of the borrower is called an international bond.
Foreign bonds and Eurobonds are two important types of international bonds.
Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
The term Eurobond applies only to foreign bonds denominated in U.S. currency.
A foreign bond might pay a higher nominal interest rate than a U.S. bond.

.2 points
Question 15

Suppose one British pound can purchase 1.82 U.S. dollars today in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days?
Answer 1.12
1.63
1.82
2.04
3.64


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Explanation / Answer

The term Eurobond applies only to foreign bonds denominated in U.S. currency 1.82*(1+0.12)=2.04

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