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A Significant Advantage of Borrowing Foreign Currency-Denominated Bonds Is That

question 82

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A significant advantage of borrowing foreign currency-denominated bonds is that the borrower need not worry about relative changes in the value of the home currency.


Definitions:

Maturity

The final payment date of a loan or financial instrument at which point the principal (and all remaining interest) is due to be paid.

Invested

The act of allocating resources, usually money, into something to earn a return or profit.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Period

A specified duration of time characterized by particular events, conditions, or phenomena.

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