A convertible bond that is denominated in a currency other than the currency of its underlying shares. As opposed to a single currency convertible (where parity moves with the underlying share price), parity of a cross-currency bond will be affected by movements in the exchange rate between the bond and the stock. The conversion price of a cross currency bond will be:
Conversion price = face value × exchange rate/ conversion ratio
This bond is also known as a foreign discount bond.
