just got confused with the dual currency bond. the question is that one bond has coupon payment in Euro and principle repayment in Turkey Lira, does it have any currency exposure to Lira and from when? the answer is from the day which the bond is purchased. there’s no explanation in the answer. hope someone could help.
You are due to receive Lira, therefore you have a Lira denominated asset…giving you exposure from the moment you purchase the bond