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Payup |
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Payup 1. A swap for a security with a higher yield. For example, an investor may swap a bond with a certain face value and coupon for another bond with an equal face value but a higher coupon. One refers to the extra funds the investor yields from the higher coupon as a payup. 2. The additional money an investor needs in order to buy a security with a higher market value. For example, an investor may need payup money if he/she owns a bond, but wishes to buy another bond with a higher coupon rate.
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