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CFA Level I · CFA Level I Exam · Fixed-Income Instrument Features

Compared with bonds issued in a country's domestic market, Eurobonds are most likely to:

Eurobonds are most likely subject to less regulatory oversight. They are issued outside the jurisdiction of any single country, often in a currency other than the issuer's home currency, and so face lighter disclosure and registration requirements than domestic bonds.

  1. Abe issued only in the currency of the issuer's home country
  2. Bbe subject to less regulatory oversightCorrect
  3. Cbe required to be registered with the national regulator of the currency of denomination

Explanation

Eurobonds are issued outside the jurisdiction of any single country and so generally face less regulation and disclosure requirements than domestic bonds. They can be denominated in a currency different from the issuer's home currency, and they are not typically registered with the regulator of the currency's country.

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