Fixed Income Q11

0. The type of bond that makes coupon payment in one currency and pays par value at maturity in another currency is a:

  • Option : C
  • Explanation : A dual-currency bond makes coupon payments in one currency and pays the par value at maturity in another currency. A currency option bond gives the bondholders the right to choose the currency in which they want to receive each interest payment and principal repayment. A pure discount bond is issued at a discount to par value and redeemed at par.
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