Questions 7 - 8 will be based on the following information.

You are an investor in Purple Beast Ltd, an Australian manufacturer of petrol-driven sports cars.

The firm has embarked on a major expansion plan and will need to raise $120 million to finance this expansion. The firm has announced that it will do this by issuing short-term debt securities, long-term bonds and shares.

The bonds will be issued in the U.S., denominated in Australian dollars. How would you describe these bonds?

a.

Domestic bonds

b.

American bonds.

c.

Eurobonds

d.

Foreign bonds