Showing posts with label Bonds. Show all posts
Showing posts with label Bonds. Show all posts

Questions on Finance 21-30

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1. What Does Foreign Bond Mean?
A bond that is issued in a domestic market by a foreign entity, in the domestic market's currency. Foreign bonds are regulated by the domestic market authorities .Since investors in foreign bonds are usually the residents of the domestic country, investors find them attractive because they can add foreign content to their portfolios without the added exchange rate exposure. Types of foreign bonds include Bulldog bonds, matilda bonds, and samurai bonds

2. Define Angel bonds
Investment-grade bonds that pay a lower interest rate because of the issuing company's high credit rating. Angel bonds are the opposite of fallen angels, which are bonds that have been given a "junk" rating, and are therefore much more risky.

3.Define Sovereign bond
A debt security issued by a national government within a given country and denominated in a foreign currency. The foreign currency used will most likely be a hard currency, and may represent significantly more risk to the bondholder.

4.Define Yankee Bond
A bond denominated in U.S. dollars that is publicly issued in the U.S. by foreign banks and corporations. According to the Securities Act of 1933, these bonds must first be registered with the Securities and Exchange Commission (SEC) before they can be sold.

5. Define Bunny Bond
A type of bond that offers investors the option to reinvest coupon payments into additional bonds with the same coupon and maturity. Also known as "multiplier bond" or "guaranteed coupon reinvestment bond."

6. Define Dragon bond
A bond that is issued in Asia but denominated in U.S. dollars. The bond is denominated in U.S. dollars because the currency is more stable and might entice foreign investors.

7. What Does Bulldog Bond Mean?
A sterling denominated bond that is issued in London by a company that is not British. These sterling bonds are referred to as bulldog bonds as the bulldog is a national symbol of England.

8.What Does Samurai Bond Mean?
A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations. Other types of yen-denominated bonds are Euro-yens issued in countries other than Japan.

9.What Does Kangaroo Bond Mean / Matilda Bond
A type of foreign bond that is issued in the Australian market by non-Australian firms and is denominated in Australian currency. The bond is subject to Australian laws and regulations. Also known as a "matilda bond."

10.What Does Shogun Bond Mean?
A type of foreign-currency denominated bond that is issued in Japan by foreign entities. Organizations such as the World Bank have issued such debt instruments in the past . Also known as a "geisha bond".