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With Regard to Dual-Currency Bonds Versus Comparable Straight Fixed-Rate Bonds

Question 79

Multiple Choice

With regard to dual-currency bonds versus comparable straight fixed-rate bonds,


A) dual currency bonds usually trade at a premium to reflect the value of the forward contract implicit in their repayment schedule.
B) the interest on dual-currency bonds is usually lower than on comparable straight fixed-rate debt.
C) the interest on dual-currency bonds is usually higher than on comparable straight fixed-rate debt.
D) none of the above

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