Scenario: ABC Software ABC Software Is a Producer of Educational Software for Children

question 14

Multiple Choice

Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerland and would like to expand its foreign operations with a new facility in China.
-Foreign bonds issued and traded in Asia outside Japan and normally denominated in dollars are called ________.

• A) bulldog bonds
• B) Yankee bonds
• C) samurai bonds
• D) dragon bonds

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Definitions:

Price Paid

The amount of money exchanged for the acquisition of a good, service, or asset.

Original Issue Discount

The difference between the face value of a bond and its offering price when the bond is issued at a lower price.

Semiannual Coupon

A fixed income security feature that represents the payment of interest to bondholders twice a year.

Par Value

The nominal or face value assigned to a security by the issuer, which may differ from its market value.