Which of the Following Statements Is True About Foreign Bonds

question 60

Multiple Choice

Which of the following statements is true about foreign bonds?

• A)The interest rate on foreign bonds is adjusted annually for inflation.
• B)Foreign bonds are bonds sold in a foreign country and are denominated in the currency of the country in which the issue is sold.
• C)Foreign bonds are bonds sold by a foreign borrower but convertible to bonds issued in the foreign country.
• D)The term Eurodebt specifically applies to any foreign bonds denominated in U.S. dollars.
• E)The interest rate on foreign bonds is adjusted annually for exchange rate fluctuations.

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Definitions:

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A type of bankruptcy that allows individuals with a regular income to develop a plan to repay all or part of their debts over a three- to five-year period.

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Debt that is not backed by any collateral and solely depends on the borrower's creditworthiness.

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