Q332
Foreign bonds issued in United Kingdom financial institutions are classified as
A.
Yankee bonds
B.
samurai bonds
C.
bull dog bonds
AnswerD.
bull cat bonds
Answer: Option C
Solution
Answer: Option C
Solution:
Foreign bonds issued in United Kingdom financial institutions are classified as bull dog bonds. Bulldog bond is a type of bond purchased by buyers interested in earning a revenue stream from the British pound or sterling. A bulldog bond is traded in the United Kingdom. If the revenue is used to reduce debt that is also in British pounds, the exchange rate risk is decreased.