Cross Currency Option Bond

Finance
Crossover Rate
August 27, 2022
Finance
Cross Currency Bond
August 27, 2022

A bond that contains an embedded option granting the holder the right to choose currencies for interest payment and principal repayment. In other words, the face value of this bond is denominated in two currencies so that the bondholder can determine the currency in which to receive payment of principal and interest.

It is also known as a dual option bond or a dual currency option bond.

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