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How Does Exchange-Rate Risk Impact the Purchase and Coupon Payments of Foreign Bonds? – Doug’s Quiz Corner

Posted by Doug Hutchinson | CFA®, Director of Research and Trading

May 18, 2018

Tackling Currency Risk When Purchasing Foreign Bonds

Consider this Scenario

Your friend Lucy is a US resident who bought a British bond at par with a £10,000 value at maturity. The bond was exactly one year from maturity at the time she purchased it and it pays a 2% semi-annual coupon. There are two coupon payments remaining including the payment at maturity.

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Doug's Quiz Corner foreign investing international diversification

Understanding How the U.S. Taxes Foreign Dividend Payments: Doug’s Quiz Corner

April 13, 2018
How Do Tax Credits and Tax Deductions Work for Foreign Dividend Payments? Your friend Emily made an investment in the stock of a company ... [+] Read More