Tuesday, March 11, 2008

Exchange Rate Risk

l. describe the exchange rate risk an investor faces when a bond makes payments
in a foreign currency;

Exchange-rate risk is the risk of receiving less in domestic currency when investing in a bond that is in a different currency denomination than in the investor's home country.

http://www.investopedia.com/study-guide/cfa-exam/level-1/fixed-income/cfa14.asp

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