- Exchangeable bond
finance, an exchangeable bond (or XB) is a straight bond with an embedded option to exchange the bond for the stockof a company other than the issuer (usually a subsidiaryor company in which the issuer owns a stake) at some future date and under prescribed conditions. An exchangeable bond is different from a convertible bond. A convertible bond gives the holder the option to convert bond into shares of the issuer.
The pricing of an exchangeable bond is similar to that of convertible bond, splitting it in straight debt part and an embedded option part and valuing the two separately.
* [http://www.ebrd.com/new/pressrel/1998/28june11.htm "First Exchangeable Bond in Central and Eastern Europe issued by EBRD"]
* [http://findarticles.com/p/articles/mi_qn4158/is_20010323/ai_n14368305 Dixons mulls Wanadoo exchangeable bond issue]
* [http://www.allianz.com/en/allianz_group/investor_relations/bonds/bonds/page1.html Allianz: Bonds and Exchangeable Bonds]
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