[Alberta's Child]

Right. Now think like an investor who would hold this bond for 20+ years, and perhaps even leave his 4% coupon in U.S. dollars for the time being. In 20+ years a lot can happen . . . and he can sell that bond at any time before it matures.

In the meantime, he's getting a 35% "discount" on his European taxes, too -- since the 4% he's earning is being reported on his tax return in Euros, not dollars (even if he never exchanges these dollars into Euros this year).

It gets really complex, but when you do business across borders these are the things that come into play when you make decisions.

[Toddsterpatriot]

In the meantime, he's getting a 35% "discount" on his European taxes, too -- since the 4% he's earning is being reported on his tax return in Euros, not dollars (even if he never exchanges these dollars into Euros this year).

The $400 annual payment is worth 260 Euros. This is an incentive to buy the "discounted" bond? LOL!

It gets really complex,

A 4% coupon is a 4% coupon. Not that complex.