- BenutzernameMoneyland User Questions
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May 22, 2017, 12:07:00 PM
What is a step-up bond and how does it differ from regular bonds?
What is a step-up bond?
Here you will find the right answers
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- BenutzernameMoneyguru von moneyland.ch
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May 22, 2017, 2:53:40 PM
Hi there,
Step-up bonds are bonds which have increasing coupon payments. When you hold this kind of bond, the coupon payments you receive as a bond holder increase at certain intervals (every year, for example) throughout the bond term.
When a step-up bond matures, the face value of the bond is paid out to the holder as with standard bonds. Step-up bonds can be beneficial because the increasing coupon payment help compensate for possible inflation.
Best regards from Moneyguru
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