Hi all,
excuse me, I have a doubt. If I want to price a fixed rate plain vanilla bond, denominated in USD, and for this want to discount its cashflows by using a USD Sovereign Curve, and then to convert this price into EUR, for example, I first discount its cashflows by using the USD curve, and then convert the final (USD) price into the EUR one by applying the spot USD/EUR rate. Ok.
But, it could make sense to convert the USD Sovereing Curve, into a EUR curve? So that I may get the final price in EUR directly using this curve (to discount its cashflows)? I don't think it makes sense to apply the spot or even forward USD/EUR rate to the USD curve, but do you know or suggest some methodology?
Thanks