If Toyota (headquarters in Japan) sells a $1,000 bond in the United States, the bond is a: A) Tokyo bond. B) Eurobond. C) currency bond. D) foreign bond.

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Business

Kody Dean

15 March, 08:00

If Toyota (headquarters in Japan) sells a $1,000 bond in the United States, the bond is a: A) Tokyo bond. B) Eurobond. C) currency bond. D) foreign bond.

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Answers (1)

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Shayla Cole · Answer 1

(B) Eurobond

Explanation:

Eurobond is a type of bond that is issued by a corporate outside of its country of incorporation. Thus, when a company headquartered in Japan issued bond in the United States, the bond is considered a Eurobond.

On the other hand, when the country issues the bond in its country of incorporation, it is a local currency bond.