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Definition of 'Dual Currency Bond'
A debt instrument in which the coupon and principal payments are made in two different currencies. The currency in which the bond is issued, which is called the base currency, will be the currency in which interest payments are made. The principal currency and amount are fixed when the bond is issued.
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Investopedia explains 'Dual Currency Bond'
Dual currency bonds are subject to exchange rate risk. If the currency in which the principal will be repaid appreciates, the bondholder will make money; if it depreciates, he or she will lose money. Investors can use dual currency swaps, which have a fixed exchange rate at issuance, to offset the exchange risk of dual currency bonds.
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Search results for 'Dual Currency Bond'
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http://www.investopedia.com/articles/tags/investing-basics/
... Find out the truth. Read More »; Key Strategies To Avoid Negative Bond Returns. ...
Read More »; Managing Currency Exposure In Your Portfolio. ...
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http://www.investopedia.com/articles/tags/Investing-Basics/
... Find out the truth. Read More »; Key Strategies To Avoid Negative Bond Returns. ...
Read More »; Managing Currency Exposure In Your Portfolio. ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/costs-and-fees.asp
... This dual fee structure varies by manager as a function of the complexity of ... debt
and equity financing known as mezzanine financing (a type of bond with an ...
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