A dual-currency bond pays coupon interest in a currency other than the home currency of the issuer.
举一反三
- 中国大学MOOC: Assume that the interest rate in the home country of Currency X is much higher than the U.S. interest rate. According to interest rate parity, the forward rate of Currency X:
- The __________ differential is approximately equal to the forward premium on a currency plus the interest rate differential. A: covered interest B: uncovered interest C: covered currency D: uncovered currency
- In order to prevent home currency from appreciating, a central bank need _________。( ) A: sell domestic currency B: purchase domestic currency C: purchase foreign currency D: issue more money
- A bond that makes payments in a certain currency contains the risk of holding that currency and so is priced according to the yields of similar bonds in that currency.（ ）
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate