Eurodollar bonds are characterized by which of the following?

Eurodollar bonds are specifically characterized as bonds that are denominated in U.S. dollars (USD) but issued outside of the United States. This means that the issuer can be a foreign entity, and the bonds may be sold to investors in various international markets, enabling issuers to access funds in USD without being subject to U.S. regulations governing domestic bond issues.

The term "Eurodollar" originally referred to U.S. dollars held in banks outside of the United States, particularly in Europe, and the bonds are structured to appeal to international investors looking for U.S. dollar exposure. This establishes an important trait of Eurodollar bonds, where their value and interest payments are made in USD, thus allowing global investors to participate in the U.S. dollar market while the issuance itself occurs beyond U.S. borders.

In contrast, bonds issued within the U.S. would not qualify as Eurodollar bonds, nor would bonds denominated in euros. Additionally, the misconception that only European companies can issue these bonds is inaccurate; entities from various countries can issue Eurodollar bonds as long as they are denominated in USD and issued outside the United States.