Differentiate between foreign bonds and Eurobonds.

Differentiate between foreign bonds and Eurobonds.

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Differentiate between foreign bonds and Eurobonds.

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Verified Answer A bond issued in the currency of home country by a foreign company is called as foreign bond. Whereas, Euro bond is the bond issued in one country in any currency other than the ho...

Verified Answer

A bond issued in the currency of home country by a foreign company is called as foreign bond. Whereas, Euro bond is the bond issued in one country in any currency other than the home currency. A Japanese company operating in the U.S.A. issues bonds in dollars is an example of foreign bonds. If the Japanese company issues bonds in the U.S.A. which is denominated in japanese yen, then it will be as a eurobond. Foreign bonds are regulated by the financial bodies of the domestic country. Euro bonds are outside the ambit of regulations of domestic countries.

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