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 ‘Currency’
July 6th, 2009 - 9:09 pm § in Currency Risk
INVESTORS AND CURRENCY RISK
The relationship between institutional investors and the idea of currency risk has been an uneasy one. For a start, there remain an overly large number of investors who are either unwilling or unable, due to the specific regulations of their fund, to consider currency risk as separate and independen[...]
July 5th, 2009 - 9:08 pm § in Exchange risk
THE CORPORATION AND PREDICTING EXCHANGE RATES
A key aspect of corporate pricing strategy is forecasting future exchange rates. Aside from using banks to help them do this, the internal models corporations use are typically one or more of the following kinds: Political event analysis Fundamental Technical For the reasons we have mentioned earlie[...]