One Type of Foreign Bond That Carries No Currency Exchange

question 71

Multiple Choice

One type of foreign bond that carries no currency exchange rate risk for a U.S. investor is a

• A) Yankee bond.
• B) Eurodollar bond.
• C) PIK bond.
• D) foreign- pay bond.

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Definitions:

Freight Train

A train that is used for transporting goods, cargoes, and commodities rather than passengers.

Producing

The process of creating goods or services that can be sold or used, often involving raw materials, labor, and machinery.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Unattainable

Refers to goals, objects, or conditions that cannot be achieved or reached, often due to existing limitations.