Business Administration 4440Q/R/S/T Study Guide - Currency Basket, Royal Numismatic Society, Reference Rate

• School: Western University
• Department: Business Administration
• Course: Business Administration 4440Q/R/S/T
• Professor: Brad Bisho

Document Summary

Questions: describe the difference between foreign bonds and eurobonds. Answer: the two major segments of the international bond market are foreign bonds and eurobonds. A foreign bond issue is offered by a foreign borrower to investors in a national capital market and denominated in that nation"s currency. For example, if the province of saskatchewan issued a bond in new. York with interest and principal denominated in us dollars, that would be a foreign bond. A eurobond issue, on the other hand is denominated in a particular currency but sold to investors in national capital markets other than the country of the denominating currency of the bond. So, for example, if the province of saskatchewan issued a bond in with interest and principal denominated in us dollars and that bond was underwritten and sold in london, that would be a eurobond. Eurobonds make up over 80 percent of the international bond market.