Beruflich Dokumente
Kultur Dokumente
International bonds
Foreign bonds: Sold by foreign borrower,
but denominated in the currency of the
country of issue.
Eurobonds: Sold in country other than the
one in whose currency it is denominated.
International stocks
ADRs: Certificates representing ownership
of foreign stock held in trust.
6
kRF
10
k*
IP
= Inflation premium.
DRP
LP
MRP
12
13
10
Inflation premium
1 yr
10 yr
20 yr
8.0%
11.4%
12.65%
5
Real risk-free rate
Years to Maturity
0
1
10
20
16
19
20
22
f1 1 k h
e0 1 k f
Here,
kh = periodic interest rate in the home country.
kf = periodic interest rate in the foreign country.
f1 = one-year forward rate
e0 = current spot rate
23