Hi, I came across these topics in my Kaplan f9 books and I'm not able to understand these concepts at all. The have used sophisticated and technical words to explain.
Could you please explain in simple words what these terms mean and what's their purpose?
Thanks in advance.
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FMWhat are Eurobonds and Eurocurrency?
Eurobonds are bonds issued in a currency different from the native currency. For example, the Pound Sterling is the native currency of the UK. If a bond were issued in US dollar denomination this would be classified as a Eurobond. Hope this helps.
The eurocurrency market is a market for borrowing money in a currency that is not the currency used in the country where the company is based. It allows companies to borrow and lend funds in currencies other than their domestic currency. For example, borrowing Japanese Yen in the UK. Hope this helps.
Thank you. Understood eurobonds and Eurocurrency now!
You are welcome.
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