Foreign bonds are bonds sold in a foreign country and denominated in that country's currency.

• A. Bonds issued in the issuer's domestic market and denominated in their own currency
• B. Foreign bonds are bonds sold in a foreign country and denominated in that country's currency
• C. Eurobonds
• D. Brady bonds

Answer: (B)

Foreign bonds are defined by where they’re sold and what currency they’re in. When a bond is issued in a country other than the issuer’s home market and is denominated in that local currency, it’s a foreign bond. This distinguishes it from domestic bonds, which are issued and denominated in the issuer’s own country’s currency. Eurobonds, by contrast, are issued outside the issuer’s home market but are usually denominated in a currency different from the home market’s currency, not necessarily the local currency of the country where they’re sold. Brady bonds are a separate type of sovereign debt from debt relief programs and aren’t defined by issuing location or local currency. So the statement correctly describes a foreign bond.