All of the following are CORRECT regarding New Zealand debt markets EXCEPT: A. Most bonds are issued with semi-annual coupons so they can be compared with government bonds. B. Bonds are usually sold by tender or by private placement. C. The corporate bond market is relatively illiquid compared to that for Crown debt. D. Most capital notes are long-term, unsecured discount instruments. E. The size of the issue is a factor that affects the size of yield margin between Crown and non-Crown securities.

Why are eurobonds generally underwritten by a multinational syndicate of banks? A. To reduce information costs. B. To reduce transactions costs. C. To place the bonds at a set price. D. Tax advantages. E. Liquidity sharing.

Which of the following does not represent overseas borrowing by the New Zealand company Telecom? A. Telecom sells eurocommercial paper in euromarkets. B. Telecom sells debentures denominated in Japanese yen to overseas investors. C. Telecom purchases debentures from a U.S. company. D. Telecom organises a loan through Commonwealth bank in Australia. E. Telecom organises an issue of eurocommercial paper.

Bonds issued by a British company in the United States are called: A. ADRs. B. foreign bonds. C. Bulldog bonds. D. eurobonds. E. Yankee bonds.