Which of the following statements is true about foreign bonds??
A. The interest rate on foreign bonds is annually adjusted for inflation.?
B. ?Foreign bonds are bonds sold in a foreign country and are denominated in the currency of the country in which the issue is sold.
C. ?Foreign bonds are bonds sold by a foreign borrower but convertible to bonds issued in the foreign country.
D. ?The term Eurobond specifically applies to any foreign bonds denominated in U.S. dollars.
E. ?The interest rate on foreign bonds is adjusted annually for exchange rate fluctuations.
Answer: B
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