Explain the step-up and step-down structure used in the Eurobond market
What will be an ideal response?
The coupon rate of certain securities can either increase or "step up" over time or decrease or "step down" over time. The coupon rate change occurs for either the passage of time or a change in the reference interest rate might. A unique structure in the Eurobond market, particularly for large issues of telecom bonds, has been coupon step-up and step-down provisions where the change in the coupon is triggered by a change in the issuer's credit rating. A rating upgrade would result in a lower coupon rate while a rating downgrade would result in a higher coupon rate.
You might also like to view...
People can emerge with different perceptions of the same object because of three perceptual processes. List and briefly characterize these processes
What will be an ideal response?
Labeling activity nodes in the network is accomplished by ______.
A. the forward pass method B. the side-tracking method C. the project leader D. the appropriate government agency
Integrated marketing communications involves the coordination of messages from multiple sources including PR, television, radio, and digital media.
Indicate whether the statement is true or false.
Inventory under absorption costing includes direct materials, direct labor, variable factory overhead, and fixed factory overhead
Indicate whether the statement is true or false