Step-up bond
A bond that pays the investor an initial above-market yield for a short, noncall period and then, if not called, steps up to a predetermined higher coupon rate.
Step-up bond
Definition:
A bond that pays a lower coupon rate for an initial period, and then increases to a higher coupon rate. Related: Deferred-interest bond, payment-in-kind bond. ...
Step-up bond
A bond that pays a lower coupon rate for an initial period which then increases to a higher coupon rate. Related: Deferred-interest bond, Payment-in-kind bond
Stochastic models ...
Related: Deferred interest bond, Step-up bond Pension Benefit Guaranty Corporation (PBGC)A federal agency that insures the vested benefits of pension plan participants (established -in 1974 by the ERISA legislation).
Compare step-up bond and payment-in-kind bond. Delivery The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
Zero-coupon bonds Zero-coupon bonds are relatively rare in the high-yield market, although there are many zero/step-up bonds. Zero-coupon bonds pay no current interest. Instead, they pay all accrued interest out at maturity.
step-up bond A type of bond that pays one coupon rate for an initial period followed by a higher coupon rate. step-up lease A type of lease providing for specified rent increases at certain future dates. Opposite of step-down lease.
 See also: Interest, Coupon, Yield, Issue, Stock
  
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