Dollar Bond


DEFINITION of 'Dollar Bond'

1. A U.S. denominated bond that trades outside of the United States. Along with the principal, any coupon payments from the bond are paid in U.S. funds.

2. A bond with a price that is quoted in dollars, rather than based on its yield to maturity.


1. Non-U.S. firms and governments will often issue bonds denominated in U.S. currency in a bid to attract U.S. investors and/or hedge currency risks. There is less currency risk on dollar bonds for U.S.-based investors looking to access international debt markets when compared to the purchase of non-U.S. denominated bonds.

2. For example, suppose that a 10-year bond has a current yield to maturity of 3.83% and a current price of $850. If this bond were quoted in terms of yield it would be quoted as 3.83% but if it were being quoted in dollar terms the bond would be quoted as $850.

  1. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Par Value

    The face value of a bond. Par value for a share refers to the ...
  4. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  5. Serial Bond

    A bond issue in which a portion of the outstanding bonds matures ...
  6. Yield

    The income return on an investment. This refers to the interest ...
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