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Explain Composite Currency Bond
Composite currency bonds are denominated in a currency basket, like SDRs or ECUs, in place of a single currency.They are often known as currency cocktail bonds. They are usually straight fixed-rate bonds. The currency composite is a portfolio of currencies: while some currencies are depreciating others may be appreciating, thus yielding lower variability overall.
Q. How will you conclude the cost of capital from different sources? Ans. Implication of Cost of Capital: - Cost of capital of a firm is the least rate of return expected by it
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