CH 9 International bonds

Question 1

The global bond market can be can be classified into two markets

Answer 1

Internal Bond market
External bond market

Question 2

What are the two parts of a internal bond market

Answer 2

Domestic (issuers domiciled in the country issue bonds and where those bonds are subsequently traded)
Foreign (of a country is where bonds of issuers not domiciled in the country are issued and traded)

Question 3

Bonds traded in the U.S. foreign bond market

Answer 3

Yankee bonds( Not issued by the U.S but traded in U.S)

Question 4

Yen-denominated bonds issued by non-Japanese entities

Answer 4

Samurai bonds

Question 5

When Eurobonds are denominated in U.S. dollars

Answer 5

Eurodollar bonds

Question 6

Global Bonds

Answer 6

that is issued simultaneously in several bond markets throughout the world and can be issued in any currency.

Question 7

Return on a portfolio that includes non-dollar denominated bonds

Answer 7

income
Capital gain/loss in the local currency
foreign currency gain/loss.