Step-down note

Step-down note

A floating-rate note whose interest rate declines after a specified period of time.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Step-Down Note

A debt security issued with a high coupon rate that gradually decreases over the life of the security. The decreases occur at regular intervals stated in the bond indenture. See also: Step-up bond.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved