Equity-Linked Eurobond

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Equity-Linked Eurobond

A bond denominated in a currency other than the one used in the country where it is issued that offers a return based on the performance of some stock or stock index. That is, the equity-linked Eurobond generally offers a small, guaranteed return with the possibility of a larger return dependent on the underlying stock or index. Equity-linked Eurobonds combine some of the advantages of both stocks and bonds, and also can help an investor hedge against foreign exchange risk.
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