--%>
Assignment Help - homework help

Characteristics of Dual currency bonds market instrument

State the characteristics of the Dual currency bonds market instrument.

E

Expert

Verified

Dual currency bond is the straight fixed-rate bond that is issued in one currency and pays coupon interest in that particular same currency.  At the time of the maturity, principal is repaid in the second currency.  Coupon interest is recurrently at a higher rate as compared to the comparable straight fixed-rate bonds.  Amount of dollar principal repayment at the maturity is set at the inception; consequently, the amount permits for some appreciation in exchange rate of the stronger currency.  As per the perspective of investor, a dual currency bond involves a long-term forward contract.

   Related Questions in Financial Accounting

  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

    		•
  • Q : Salary outstanding account What type of

    What type of Account is Salary outstanding? What do you think, it is real or personnel or the nominal account?

    		•
  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought

    		•
  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

    		•
  • Q : Retail or client market and wholesale

    Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

    		•
  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

    		•
  • Q : Determinants of operating exposure

    Describe determinants of the operating exposure.

    		•
  • Q : What is Edge Act banks State what is

    State what is meant by Edge Act banks.

    		•
  • Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Q : Brokering Creativity Explain the term

    Explain the term Brokering Creativity in Creative industry ?  

    		•