Detailed Answer
(b) The requirement is to identify the definition of
Eurobonds. Answer (b) is correct because Eurobonds are always
sold in some country other than the one in whose currency the
bond issue is denominated. The advantage of Eurobonds is that
they are less regulated than other bonds and the transaction costs
are lower. Answer (a) is incorrect because Eurobonds are not
always denominated in Eurodollars, which are US dollars deposited
outside the US. Answer (c) is incorrect because foreign
bonds are denominated in the currency of the country in which
they are sold. Answer (d) is incorrect because Eurobonds are
usually issued not as registered bonds, but as bearer bonds.
