Dual Currency Option Bond

Islamic Finance
Categories of Musharaka
October 21, 2021
Finance
Dual Coupon Bond
October 21, 2021

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 cross-currency option bond or a dual option bond.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts