Which type of bond is issued abroad in U.S. dollars?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

The correct answer is Eurobonds, which are bonds issued in a currency other than the currency of the country in which they are issued, typically outside of the jurisdiction of the country that issues the currency. In the context of this question, Eurobonds are specifically those that are issued in U.S. dollars but sold in a market outside of the United States.

This characteristic allows issuers to access a wider range of investors and can provide benefits such as avoiding certain regulations and taxes that might apply to domestic offerings. Eurobonds are particularly popular because they can help issuers raise capital in a stable and widely-used currency like the U.S. dollar, enhancing their appeal to international investors who might prefer U.S. dollar-denominated assets.

In comparison, global bonds are those that can be issued and traded in multiple markets simultaneously, which might include various currencies, but they do not specifically denote the international issuance of bonds in one single currency outside the issuer's country. Foreign investment bonds refer to bonds issued by a foreign entity but do not clarify the currency or the specific market where they are offered. Lastly, international bonds can be a broad category of bonds issued in foreign countries or in different currencies but do not specifically address the issue of being denominated

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