--%>
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 : Trading A CD/$ bank trader is presently

    A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441.  Specify what all is implied about trader’s beliefs by his prices?

    		•
  • Q : Importance of international financial

    Explain the importance in studying the international financial management?

    		•
  • Q : Fisher Effect and Purchasing Power

    Explain and discuss the significance of Fisher Effect and the Purchasing Power Parity theories to a foreign exchange dealer in the merchant bank?

    		•
  • Q : Appropriated retained earnings The

    The portion of retained earning that is not available for dividends. To appropriate retained earnings, the company must record the partitioning of retained earnings. The company can use appropriated retained earnings for contingencies or big projects. Appropriating retained earning does not invol

    		•
  • Q : Real gross profit ratio and standard

    Is real gross profit ratio is bigger than standard gross profit ratio?

    		•
  • Q : Meaning of Goodwill Meaning of Goodwill

    Meaning of Goodwill: Goodwill puts the association at a good position due to which the organization is capable to earn huge profits without any additional efforts. Goodwill can’t be seen although felt. Thus goodwill is termed as an Intangible as

    		•
  • Q : Benefit of Electronic Funds Transfer

    Illustrate the benefit of Electronic Funds Transfer?

    		•
  • Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : Case study of a local public utility

    The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.

    		•
  • Q : Characteristics of straight fixed-rate

    State the characteristics of the straight fixed-rate bond market instrument.

    		•