The Key Difference Between a Yankee Bond and a US

question 69

Multiple Choice

The key difference between a Yankee bond and a US dollar eurobond is:

• A) a Yankee bond is issued by a US company into the US capital markets.
• B) a Yankee bond is issued by a company in Japan but is denominated in US dollars.
• C) a US dollar eurobond is issued by a foreign company into the US capital markets.
• D) a Yankee bond is issued by a foreign company into the US capital markets.

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Definitions:

Effective Yield

A measure of the return on an investment, accounting for the effects of compounding interest over a specified period.

Stated Rate

The nominal interest rate specified in a loan or financial instrument agreement, not accounting for compounding or fees.

Cash Interest Paid

This represents the actual amount of interest in cash that a company pays on its debts over a specific period of time.

Sold At A Discount

Selling a product or security for less than its face value or normal selling price.