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Explain Composite Currency Bond

Composite currency bonds are denominated in a currency basket, like SDRs or ECUs, in place of a single currency.They are often known as currency cocktail bonds.  They are usually straight fixed-rate bonds.  The currency composite is a portfolio of currencies: while some currencies are depreciating others may be appreciating, thus yielding lower variability overall.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9544724

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