A although they dont have a choice dual-currency bond


Select the most accurate statement regarding Dual-Currency Bond investors receiving their final payment of principal or face value at maturity.

a. Although they don't have a choice, Dual-Currency Bond investors would rather be paid the Bond's Principal in Foreign Currency when the foreigh currency gets stronger relative to the investor's Domestic Currency (i.e. lower exchange rate ratio of foreign currency per unit of domestic currency)

b. Although they don't have a choice, Dual-Currency Bond investors would get equal compensation at maturity whether they are paid the Bond's Principal in Foreign Currency or Domestic Currency since they are protected by the implied exchange rate set at the beginning.

c. Although they don't have a choice, Dual-Currency Bond investors would rather be paid the bond's principal in domestic currency when the foreign currency gets stronger relative to the investoro's domestic currency (i.e. lower exchange rate ratio)

 

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Finance Basics: A although they dont have a choice dual-currency bond
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