CFA Level I · CFA Level I Exam · Fixed-Income Cash Flows and Types
A corporate bond is issued in a country other than the issuer's home country, in the currency of the country where it is sold, and is subject to that country's securities regulations. This bond is best described as a:
The bond is best described as a foreign bond. It is sold by a foreign issuer in a national market, in that market's currency, and under that country's regulations. Eurobonds fall outside any single country's jurisdiction, and global bonds are issued in several markets at once.
- Aforeign bondCorrect
- BEurobond
- Cglobal bond
Explanation
A foreign bond is issued by a non-domestic issuer in a national market, in that market's currency and under its regulations. A Eurobond is issued outside the jurisdiction of any single country, and a global bond is offered simultaneously in both Eurobond and domestic markets.
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