What Is Dollarization? What Are Some of the Benefits and Cost

question 1

Essay

What is dollarization? What are some of the benefits and cost that go along with it?

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Definitions:

Semi-Annually

This term describes events or processes, such as interest payments or calculations, that occur twice a year.

Face Value

The nominal or dollar value printed on a security or a financial instrument, such as a bond or stock.

Annual Coupon Bonds

Bonds that pay interest to the bondholder yearly until maturity, at which point the face value is also repaid.

Yield To Maturity

The expected total yield from a bond when held until its maturity date.