# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Dual Currency Bond

A bond that pays a coupon in one currency but is redeemed for a fixed sum in another, often the dollar. Investors usually get an above-market coupon, but run the risk that, in this example, the dollar could fall below the exchange rate used when the amount was fixed. Such bonds are attractive to borrowers who operate in the redemption currency because they have no long-term exchange rate risk.