EC249 Lecture Notes - Lecture 14: Eurodollar, Cash Flow, Interest Rate
Document Summary
Chapter 7: international bonds: the world"s bond markets. The total market value of the world"s bond market is large and growing: bearer bonds are bonds. Whomever holds the bond gets the money at the date of maturity. Often preferred to decrease tax bills for this reason. Have a lower return than registered bonds due to higher yields on registered bonds: repealing withholding taxes on foreign bond holders. Declaring capital gains in the country the gains were made. Has decreased the spread between us government bonds and eurodollar bonds. Prices will converge to reflect greater gains in us bonds due to less tax. Is an example of repealing double taxation. Less direct revenue, pie increases with more foreign investment: the bonds with the colourful names are, the bonds with the colourful names are. Are eurobonds that are less regulated than domestic bonds. Foreign bonds that have to meet domestic legal requirements.
