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Management · Q69

International Finance and Treasury

Graduate and Post Graduate · Management · question 69

Q69

Long-term securities denominated in two currencies is called as

A.
Euro bond
B.
Dual currency bonds
Answer
C.
Foreign bonds
D.
Euro dollar deposit

Answer: Option B

Solution

Answer: Option B
Solution:
Long-term securities denominated in two currencies is called as Dual currency bonds. A dual currency bond is a synthetic security that is redeemed in one currency while interest payments over the life of the bond are made in another currency. For example, a bond issued in U.S. dollars which pays interest in euros will be considered a dual currency bond.