Final answer:
The incorrect statement among the options provided is that Yen-denominated foreign bonds issued in Japan are called bulldog bonds; the correct term for these is 'samurai bonds.' Bulldog bonds are related to the United Kingdom.
Step-by-step explanation:
The incorrect statement among the options is (c) 'Yen-denominated foreign bonds issued in Japan are called bulldog bonds.' This statement is inaccurate. In reality, Yen-denominated foreign bonds issued in Japan are referred to as 'samurai bonds,' not bulldog bonds.
The terminology used for foreign bonds denominated in different currencies varies based on the issuing country. In the case of Japan, when non-Japanese entities issue bonds denominated in Japanese Yen, they are termed 'samurai bonds.' These bonds allow foreign issuers to access the Japanese capital market.
On the other hand, 'bulldog bonds' refer to bonds denominated in British pounds but issued in the United Kingdom by foreign entities. Bulldog bonds are a means for non-British issuers to tap into the UK capital market.
Therefore, the correct classification for Yen-denominated foreign bonds issued in Japan is 'samurai bonds,' making option (c) the incorrect statement. The correction underscores the importance of accurate financial terminology, especially when dealing with international bonds and securities markets.