A _________ is a type of convertible bond issued in a currency different than the issuer's domestic currency
A
Treasury bond
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Municipal bond
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Foreign Currency Convertible bond
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Corporate bond
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is B Foreign Currency Convertible bond A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument.