When a government borrow money from the public on a long-term basis, it usually does so by issuing debt securities, typically referred to as government bonds. A bond that is issued in Europe or in the US by an Australian company and that pays interest and principal to the lender in Australian dollars would be considered as a Eurobond. Focusing on the topic from FINC20018 Managerial Finance, briefly discuss the innovations in bond market.

What are Euro bonds? Analyse the advantages and disadvantages of Eurobonds.

Fill out the blanks with the choices by "drag and drop" A British company is considering issuing a bond. 1) If the bond is issued in the UK and is denominated in Japanese yen, the bond is 2) If the bond is issued in France and is denominated in euros, the bond is 3) If the bond is issued in both France and the UK and is denominated in British pounds, the bond is Choices: a Eurobond a domestic bond a foreign bond a global bond

Which of the following statements regarding bonds is most accurate? A. Eurobonds are international bonds that are denominated in the local European currency of the country in which they are issued. B. Domestic bonds are bonds issued by a foreign company in a local market and are intended for local investors. C. Foreign bonds are bonds issued by a local entity and traded in a local market, but purchased by foreigners. D. Global bonds combine the features of domestic, foreign, and Eurobonds, and are offered for sale in several different markets simultaneously. O E. Debentures are a type of secured corporate debt in which specific assets are pledged as collateral.