Stepped Coupon Bond
A callable bond issued with a low coupon rate that gradually increases over the life of the bond. The increases occur at regular intervals stated in the bond indenture. It is also called a step-up coupon security or a dual coupon bond
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See stepped coupon bond.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.