Question

Which of the following statements is FALSE? Global bonds combine the features of domestic, foreign, and Eurobonds, and are offered for sale in several different markets simultaneously. In a leveraged buyout (LBO), a group of private investors purchases all the equity of a public corporation. A term loan is a bank loan that lasts for a specific term. Eurobonds are international bonds that are denominated in the local European currency of the country in which they are issued.

Answer 1

Answer:

Eurobonds are international bonds that are denominated in the local European currency of the country in which they are issued.

Explanation:

A Eurobond refers to the debt security that is priced in a medium of exchange apart from the nation's domestic currency or sector which it is distributed in. The monetary system under which they are transacted, like eurodollars or euro-yen securities, is often categorised together through Eurobonds.

The issuing of Eurobonds is typically done on behalf of the issuer by an foreign cartel of financial firms, one of which will help finance the bond, thereby ensuring the entire batch of security is purchased.