A Yankee Bond is a bond issued by a foreign entity, such as a bank or company, but is issued and traded in the United States and denominated in U.S. dollars. For instance, Company ABC is headquartered in France. If Company ABC issues bonds in the United States that are denominated in U.S. dollars, the bonds are Yankee bonds. Yankee bonds are normally issued in tranches, a large debt structure financing arrangement into a lot of portion, each portions have different level of risk, interest rates and maturities, and the value of investment grouping might be extremely high, as much as $1 billion. U.S. investors buy Yankee bonds to branch out into overseas markets. Yankee bonds are same with other bonds which will require the borrower to pay a certain interest rate and principal amount according to the terms of the indenture. Yankee Bonds are administered by the Securities Act of 1933. A non-American company will sell bonds in United States to raise capital from American investors. Therefore, the issuers from non-American company have to register Yankee Bonds with the Securities and Exchange Commission (SEC) before offering the bond for sale. Hence, U.S. investors can purchase the securities issued by the foreign entity without worrying about the price fluctuation created by changes in currency exchange rates. Yankee bond prices are mostly influenced by the variations of interest rates in U.S. and the financial condition of the issuer.