Export Development Canada issued a bond on March 17, 2009. The terms were as follows: a. What

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Export Development Canada issued a bond on March 17, 2009. The terms were as follows:

Currency of denomination: Japanese yen (JPY) Denomination: JPY 100,000,000 Maturity date: March 18, 2019, or

March 18, 2016-September 18, 2016: 2.75%-6-month JPY LIBORBBA September 18, 2016-March 18, 2017:

a. What is meant by JPY LIBORBBA?

b. Describe the coupon interest characteristics of this bond.

c. What are the risks associated with investing in this bond if the investor’s home currency is not Japanese yen?

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Bond Markets Analysis And Strategies

ISBN: 9780253337535

10th Edition

Authors: Frank J. Fabozzi, Francesco A. Fabozzi

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