Step-Up Bond

外汇网2021-06-19 20:55:01 155

A bond that pays an initial coupon rate for the first period, and then a higher coupon rate for the following periods.

|||In other words, the coupon "steps up". For example a five-year bond may pay a 4% coupon for the first two years of its life and a 6% coupon for the final three years.