Which statement about a Eurodollar bond is NOT true?

A Eurodollar bond is indeed a dollar-denominated bond that is issued outside of the United States, commonly by multinational corporations. The primary characteristic of Eurodollar bonds is that they are issued in U.S. dollars but are located outside the U.S., which allows issuers to access funds in dollar amounts while benefiting from international markets.

The statement that may lead to confusion is that a Eurodollar bond may trade in the U.S. markets despite its classification. While it is common for these bonds to be issued outside the U.S. and not be subject to U.S. regulations, they can be traded in U.S. markets due to the global nature of financial instruments. Thus, the assertion that Eurodollar bonds may never trade in U.S. markets is false.

The other statements are reflective of the characteristics of Eurodollar bonds: they pay interest and principal in dollars, they are issued by multinational corporations often as a way to raise capital internationally, and they are not registered with the Securities and Exchange Commission (SEC) in the U.S. These aspects highlight their unique financial structure and the regulatory environment in which they operate.