4 Questions
What is a Foreign Currency Convertible Bond (FCCB)?
A quasi-debt instrument issued in a currency other than the issuer’s domestic currency
What is a characteristic of FCCBs?
They provide an option to convert the bonds into equity
What is the purpose of FCCBs for issuers?
Accessing capital available in foreign markets
What is a possible feature of FCCBs?
They could have a coupon rate of zero but have yield on maturity
Test your knowledge of Foreign Currency Convertible Bonds (FCCBs) with this quiz. Explore the features, benefits, and characteristics of FCCBs, including coupon rates, yield on maturity, and interest rates. Perfect for finance enthusiasts and those interested in understanding international finance instruments.
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