Finance Resources
Investment Planning
Stock Market
Futures & Options
Mutual Funds
Home » Investment Planning » Bonds and Security » Step-Up Bond

Step-Up Bond

What is a Step-Up Bond

A step-up bond is a type of variable note. The step-up bonds coupon increases at regular intervals until the bond reaches its full maturity. These higher rates are predetermined when the bond is initially purchased. The benefit of this type of bond is that an investor does not have to concern themselves with how the price will fluctuate relative to the market index, since the higher coupon rate is fixed. Step-up bonds are generally issued by government agencies.

Example of a Step-Up Bond

Let's say an investor purchases a 5-year step-up bond from Company A. This step-up bond has a rate of 3% for the first three years and 5% for the last two years. The benefit of the step-up bond is that the investor will usually receive the initial coupon above the market and will know exactly what to expect from their bond over the long-term.



bonds, Step-Up Bond, Putable Bonds, Callable corporate bond, Floating rate bonds, Convertible Bond, zero coupon bonds, zero coupon bonds investment, strip bonds, municipal bonds, government zero coupon bonds, federal income taxes, state and local taxes, local tax, corporate bond

Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2024. All Rights Reserved.