A currency swap with no notional principal can be used to synthetically convert a bond issued in one currency into a bond issued in another currency.

Name: A currency swap with no notional principal can be used to synthetically convert a bond issued in one currency into a bond issued in another currency.
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Question

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A currency swap requires an exchange of notional principal amounts in different currencies to effectively convert the cash flows of a bond from one currency to another.

A Currency Swap with No Notional Principal Can Be Used