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Question

A _________ is a type of convertible bond issued in a currency different than the issuer's domestic currency

A
Treasury bond
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B
Municipal bond
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C
Foreign Currency Convertible bond
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D
Corporate bond
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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.

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