Bond option


Also found in: Wikipedia.

Bond option

An option to buy or sell a bond by a particular date at a fixed price.

Bond Option

An option to buy or sell (depending on whether it is a call or a put) a bond at a certain price on or before the expiry date. One buys a call bond option if one believes that interest rates will fall, causing an increase in bond prices. Likewise, one buys a put bond option if one believes that the opposite will be the case. See also: Stock option.
References in periodicals archive ?
Shaikh said that FBR is planning another issuance in June and advised the claimants to exercise their bond option and provide their CDC accounts to the tax body so that they can be accommodated in the next issuance.
The cash bail bond option means that they will have to deliver cash to the jail.
The administration of President Muhammadu Buhari devised the Islamic Sukuk bond option as one of the ways to finance the infrastructure gap in the land and in 2017; it facilitated the first of such options by securing a N100 billion Sukuk.
Tchuindjo (2011) [18] studied the pricing of bond and bond option under the condition of stochastic default intensity and obtained the explicit solution.
A person who drives a 20-mile-per-gallon car 15,000 miles a year would pay an additional $15 a year in gas taxes, less than half the cost of the smallest bond option. A person whose truck gets 12 miles per gallon would have to drive 20,700 miles a year before the cost of a 2-cent gas tax increase exceeded the yearly cost of the smallest bond option.
The Avianca's ATR 72-600s financing has also been awarded as a recognition for being very first one to include a Flip to Bond option , an innovative structure enabling to refinance the operation on the capital markets through the conversion of the ECA-guaranteed loans into ECA-wrapped bonds.
In summary, we have an asymptotic expression for the zero-coupon defaultable bond option price with fractional recovery, which is given by
Treasury, the IRS and the Bureau of Public Debt to develop the savings bond option. The organization works to improve low-income families' use and understanding of financial services.
The buySAFE bond option in checkout provides shoppers a choice to purchase a bond with two benefits: a full guarantee of the transaction terms of sale up to USD25,000 and thirty days of identity theft protection service.
By aggressively advertising the lower cost surety bond option, which also provides superior coverage to the much-reduced security deposit specials, Related has been able to compete effectively for prospects while protecting its bottom line.
Creates NewTaxable Bond Option (Build America Bonds).
* to expand the types of government bonds; New Taxable Bond Option allows issuers to receive a 35 percent reimbursement of interest paid from the federal government or provide a 35 percent tax credit to investors