The par value of a bond is the amount that the issuer agrees to repay the bondholder by the maturity date. This amount is also referred to as the principal, face value, redemption value, or maturity value. Bonds can have any par value. Because bonds can have a different par value and currency (e.g.,[...]
Posts Tagged ‘Cash’
July 1st, 2009 - 9:07 pm § in Currency Risk
HEDGING EMERGING MARKET CURRENCY RISK
Emerging market currencies have important characteristics which a corporation needs to take account of with specific regard to a currency hedging programme: Liquidity risk, Convertibility risk, Event risk, Jump risk. Discontinuous price action. Implied volatility is a very poor guide to future spot [...]