Multiple choice

Euro Bond is an instrument

  1. issued in the European market

  2. issued in Euro Currency

  3. issued in a country other than the country of the currency of the Bond

  4. all of the above

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A Eurobond is defined by where it is issued, not the currency. It is a bond issued in a country other than the country whose currency it is denominated in. For example, a dollar-denominated bond issued in London or a yen-denominated bond issued in France. The term comes from the historical Eurocurrency market, not from Europe or the Euro currency.

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