A bond that allows the investor to choose in which currency he wishes the interest payments and/or the final repayment to be made (bond for which interest payments and/or the final repayment are agreed in a different currency). The terms and conditions of the bond must specify how the conversion rate is determined. – Often these bonds contain a special agreement allowing the issuer to call the security early. The investor is also often granted an earlier right to call the bond in the event of special circumstances. In this way, the high exchange rate risk inherent in currency convertible bonds can be limited (multicurrency bonds can contain options that grant the creditor [put option] and/or the debtor [call option] the right to call the bond early. Hereby the exchange rate risk associated with the subscription or issue could be limited). – See multi-currency clause, dual currency bond, reference currency, value clause.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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