PRDC US $ PRDC dual currency note reverse dual currency note PRDC power reverse dual currency note PRDC US $ US $ US $ PRDC p108 Wikipedia PRDC US $ $

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1 PRDC PRDC PRDC PRDC power reverse dual currency note 2010a2010b PRDC PRDC Wikipedia English PRDC PRDC PRDC p10 PRDC 2010a PRDC

2 PRDC US $ PRDC dual currency note reverse dual currency note PRDC power reverse dual currency note PRDC US $ US $ US $ PRDC p108 Wikipedia PRDC US $ $ PRDC 3 1B PRDC

3 PRDC $ $ US $ $ $ /$ US $ US $ US $ US $ US $ / $ US $ $ $ $ $ Swap Counter Partner LIBOR London Inter-Bank Offered Rate LIBOR

4 US $ $ $ $ US $ US $ PRDC US $ US $ US $ $ $ US $ / US $ US $ $ LIBOR $ LIBOR / LIBOR PRDC PRDC PRDC US $ $

5 PRDC $ $ PRDC PRDC PRDC US $ /$ $ $ $ US $ PRDC PRDC $ $ Wikipedia infobank PRDC Wikipedia infobank Wikipedia Payoff and cashflows investor issuer c1 US $ c2 The investor pays a coupon times a fixed rate in currency c1 and receives a coupon times a fixed rate in currency c2 times current FX rate divided by the FX rate at the inception of the deal. US $

6 $ PRDC PRDC $ $ $ $ US $ $ PRDC PRDC $ $ US $ $ PRDC $ PRDC US $ PRDC US $ PRDC PRDC $ / $ PRDC p2

7 PRDC PRDC PRDC PRDC / US $ FX PRDC PRDC PRDC US $ PRDC PRDC FX-TARN 3 1B PRDC PRDC US $ p177 p70 p47 PRDC PRDC p192

8 PRDC $ US $ PRDC PRDC PRDC PRDC FX-TARN Target Redemption p112 $ / / PRDC US $

9 PRDC p394 discount rate discount factor forward exchange rate $ $ $ $ /$ $ $ $ implied forward rate LIBOR / $ /$ discount factor discount rate discount factor

10 LIBOR UFJ US $ $ p70 p71 implied US $ implied US $ $

11 PRDC PRDC PRDC $ / $ /$ $ PRDC US $ $ $ PRDC $ $ $ PRDC $ PRDC US $ p188 US $ PRDC / p194 PRDC Wikipedia English

12 PRDC PRDC US $ PRDC PRDC PRDC FX US $ US $ / PRDC FX PRDC FX-TARN p26 p29 PRDC 2010a 2010b bloomberg.net.2008 / 11 / 19

13 PRDC Y. E. Pen, Scott Y. & Ravi E. Dattatreya, The Structurednote Market, McGraw-Hill, infobank by ARTIS money.infobank.co.jp / contents / H.htm Wikipedia English, Power reverse dual currency note, last modified on 4 February 2011 discussion Malin Lindquist Merrill Lynch, Tokyo

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