Page 28 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 28 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u06294- Dual-Currency Bonds:Is a straight fixed-rate bond issued in one currency, say, Egyptian pound EGP, that pays coupon interest in that same currency. But at maturity, the principal is repaid in another currency, say, U.S. dollars. Coupon interest rate is usually higher than comparable straight fixed-rate bonds.5- Composite Currency Bonds:Is a straight fixed-rate bond denominated in a currency basket. Often called currency cocktail bonds.Example1:Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF1,000 of par value. What is the implicit SF/$ exchange rate at maturity? Will the investor be better or worse off at maturity if the actual SF/$ exchange rate is SF1.35/$1.00?Solution:Implicitly, the dual currency bonds call for the exchange of SF1,000 of face value for $666.67.Therefore, the implicit exchange rate built into the dual currency bond issue is SF1,000/$666.67, or SF1.50/$1.00. If the exchange rate at maturity is SF1.35/$1.00, SF1,000 would buy $740.74 = SF1,000/SF1.35.Thus, the dual currency bond investor is worse off with$666.67 because the dollar is at a depreciated level in comparison to the implicit exchange rate of SF1.50/$1.00.