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

question 47

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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Definitions:

Capsid

Protein coat surrounding the nucleic acid of a virus.

Envelope

A flat, usually rectangular or square paper container used for sending letters or documents, or the outer covering of a structure.

Pilus

A hair-like appendage found on the surface of many bacteria, involved in adhesion to surfaces and in bacterial conjugation.

Endotoxins

Toxic substances bound to the bacterial cell wall and released when the bacteria disintegrates.