Let's consider the NKK dual-currency bond shown in Exhibit 7.3. It is a bond quoted in yen at 101%. What would happen to the market price if the following scenarios took place?
a. The market interest rate on (newly issued) yen bonds drops significantly.
b. The dollar drops in value relative to the yen.
c. The market interest rate on (newly issued) dollar bonds drops significantly.
d. Would you give the same answers if the same bonds were quoted in dollars?

Question

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The Answer of Let's consider the NKK dual-currency bond shown in Exhibit 7.3. It is a bond quoted in yen at 101%. What would happen to the market price if the following scenarios took place?
a. The market interest rate on (newly issued) yen bonds drops significantly.
b. The dollar drops in value relative to the yen.
c. The market interest rate on (newly issued) dollar bonds drops significantly.
d. Would you give the same answers if the same bonds were quoted in dollars?

Let's Consider the NKK Dual-Currency Bond Shown in Exhibit 7