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Step-up Bond

 
Investment Dictionary: Step-up Bond

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

Investopedia Says:
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.

Related Links:
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. Advanced Bond Concepts
An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why! Asset Allocation Within Fixed Income
If you want a diversified portfolio and steady cash flow, you should learn about this fixed-income strategy. The Basics Of The Bond Ladder


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