Final answer:
A Yankee bond is issued by foreign banks or corporations in the United States, and it is considered a safe investment due to the creditworthiness of the issuers. Unlike other bonds issued by firms, cities, or governments, Yankee bonds provide American investors with international investment opportunities. Option d
Step-by-step explanation:
A Yankee bond is a type of bond that is of interest in the realm of international finance and investment. Specifically, a Yankee bond is issued in the United States by a foreign government or corporation, meaning that it is a dollar-denominated bond sold by an entity outside of the U.S. to American investors.
This differentiates it from other types of bonds, such as corporate bonds issued by firms, municipal bonds issued by U.S. cities, state bonds by U.S. states, and Treasury bonds issued by the federal government through the U.S. Department of the Treasury.
Investing in Yankee bonds can be seen as relatively low risk since these bonds are usually offered by entities that have a good credit standing. However, they are not without risk, as in the case of corporate bonds; if the issuer fails to make the promised payments, it may lead to bankruptcy, affecting the repayment to bondholders.
When it comes to U.S. Treasury Bonds, they are known for their safety and reliability, as the U.S. government has been consistent in making payments on its bonds. This is why U.S. bonds, in general, can be considered some of the safest investments globally. Option d