Vidyalelo
Management · Q326

International Finance and Treasury

Graduate and Post Graduate · Management · question 326

Q326

Denomination currency choice and volatility of interest rates affects

A.
maturity date of euro bond
B.
cost of euro bond
Answer
C.
issuance process of bonds
D.
process of printing money

Answer: Option B

Solution

Answer: Option B
Solution:
Denomination currency choice and volatility of interest rates affects cost of euro bond. A Eurobond is a debt instrument that's denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are important because they help organizations raise capital while having the flexibility to issue them in another currency.