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Issuing dual currency bonds

What borrower must consider before issuing the dual currency bonds?

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A dual currency bond is a straight fixed-rate bond that is issued in one currency and pays coupon interest in the same currency.  While at the time of maturity, principal is repaid in the second currency.  Coupon interest is consequently at the higher rate as compared to the comparable straight fixed-rate bonds. The amount of dollar principal repayment at the time of maturity is set at the inception; consequently, the amount permits for some appreciation within the exchange rate of the stronger currency. 

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