Vidyalelo
Management · Q680

International Finance and Treasury

Graduate and Post Graduate · Management · question 680

Q680

Eurobonds are admired because

A.
they are less risky than traditional bonds
B.
European companies are considered very stable
C.
of absence of government regulation
Answer
D.
they are always denominated in euro

Answer: Option C

Solution

Answer: Option C
Solution:
Eurobonds are admired because of absence of government regulation. 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.