stepped coupon bond

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

stepped coupon bond

A bond with interest coupons that change to predetermined levels on specific dates. Thus, a stepped coupon bond might pay 9% interest for the first 5 years after issue and then step up the interest every fifth year until maturity. Issuers often have the right to call the bond at par on the date the interest rate is scheduled to change. Also called dual coupon bond, rising-coupon security, step-up coupon security.
References in periodicals archive ?
This article presents the straight bullet bond modification called stepped coupon bond.
One of the ways to raise it is to issue long-term debt securities of the stepped coupon bond construction.
The instrument which may be used to raise this level is the stepped coupon bonds, a novel solution non-existent on the Polish market.
In search of an in-between solution the so-called stepped coupon bonds were constructed.
The refunding bonds, will be a combination of serial bonds, and stepped coupon bonds.