Describe the dollar-denominated bonds that are issued in the United States by a foreign issuer.

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Dollar-denominated bonds, also known as foreign bonds or “Eurobonds” are issued in the United States by a foreign issuer. These bonds, which are in U.S. Dollars, can be purchased by investors both within the United States and abroad. The bond issuer usually obtains funds from selling these securities. They then pay interest (coupons) on a predetermined schedule over the course of the bonds, before repaying the principal at maturity.

Due to its large capital market, which allows access to large sums of money from investors around the world, foreign issuers often look to America for financing. When borrowing U.S. dollars, currency fluctuations are not a concern, as payments and receipts in U.S. dollars will be made in U.S. dollars.

The Securities Exchange Commission requires that foreign companies who wish to issue dollar-denominated securities on US soil meet certain conditions. These include filing a registration statement before offering their securities which includes information about their business operations, financial condition and disclosures related to any risks involved with investing in the company’s debt instruments.. Additionally they must comply with all applicable SEC rules regarding sales practices such as advertising materials used for solicitation purposes or use of “finders” who help locate potential investors Overseas issuers may also need approval from U.S regulatory authorities such as Federal Reserve Board prior to selling their securities domestically.