- 10 Marks
AFM – May 2017 – L3 – Q4a – Sources of finance and cost of capital
Explanation of Eurobonds, their advantages, and problems associated with their use in Ghana's international borrowing.
Question
The government of Ghana has been borrowing in the international financial market by issuing “Eurobonds” to finance projects in Ghana. There has been a keen debate on the borrowing by the government.
Required:
i) As a Finance Officer, explain what Eurobond is all about. (3 marks)
ii) Identify THREE advantages that have been cited for the government using Eurobonds. (3 marks)
iii) Evaluate FOUR problems associated with the use of international borrowing, especially Eurobonds in Ghana. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Eurobonds, Government Finance, International borrowing, Risk Management
- Level: Level 3
- Topic: Sources of finance and cost of capital
- Series: MAY 2017