Answer to Question #269993 in Economics for PRGB

Question

 A multinational company is looking to raise USD 50000000 for its expansion strategy across different countries, where they are only present as of now. Based on their financial capital structure, the HQ decides to go for funding by issuing bonds in the international market. Describe the two broad categories of international bond markets. Briefly explain

the various types of bond instruments that the MNC can consider issuing in the international bond market.

Answer 1

The international bond market is a market for bonds that are traded beyond national boundaries. They pull together investors from different countries. The bonds which are traded in international bond markets are called international bonds.

The three categories of international bonds are domestic bonds, Eurobonds, and foreign bonds.

Issuing bonds is one way for companies to raise money. The investor agrees to give the corporation a certain amount of money for a specific period of time. In exchange, the investor receives periodic interest payments.