Currecy Swap and NP

  1. In a currency swap, you don’t have to exchange notional principal. — True or False? 2. When do you want to exchange notional principals in a currency swap? 3. How do you create a dual-currency bond(to pay coupon in one currency and pay principal in another currency)?
  1. False 2. Initially and Finally 3. Enter TWO currency swaps and net them? never heard of this one

1 true you can just swap payments 2 begin and end 3issue a bond with principal and coupon in BRL and then enter a pay brl fixed receive USD currency swap

pimpin : swap payments in which currency of the two? toss a coin to decide?

True When you need the principal in that currency (and entering swap to gain interest rate advantage)? kinda not sure what is being asked here. Issue bond in one currency and then swap payments where fixed receipt is in original bond currency and pay alternate man i am bad at this stuff

janakisri Wrote: ------------------------------------------------------- > pimpin : swap payments in which currency of the > two? toss a coin to decide? was thinking of the brazil global bonds in market sorry, they are a cross currency bond…prinicpal in brl and coupon in USD

w currency swaps there is always an exchange of NPs at the start and at the end dual currency bond is when you get better interest in your home country, but want to make the payments in a foreign currency i think you’d want to do this if you wanted to finance a project abroad you exchange NPs at the start, then make the payments in FC, and when you swap NPs at the end, you get back the principal which you use to make the final payment on the bond