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Warrant-Linked Bond

A bond that carries fixed coupon (interest payment) and the right (embodied in a warrant) entitling the bearer of the...

Convertible Asset Option Transaction

A par asset swap whose underlying asset (e.g. a convertible bond) is repackaged with an equity warrant stripped therefrom, with…

Liability Dividend

A dividend that is paid with some form of debt such as bond, rather than cash or stock. Sometimes, companies…

Low Coupon Bond

A bond that pays small coupons over its life, but requires a large payment of principal at maturity. This bond, therefore, allows…

ETM Bond

It stands for escrowed to maturity bond; a bond whose principal and interest are paid using moneys held in an...

Escrowed To Maturity Bond

A bond whose principal and interest are paid using moneys held in an escrow account, as originally scheduled through the...

Crossover Refunding Bond

A bond that is issued in order to pay off (redeem) an existing bond issue before maturity. At the outset,...

Cross Currency Bond

A convertible bond that is denominated in a currency other than the currency of its underlying shares. As opposed to...

Cross Currency Option Bond

A bond that contains an embedded option granting the holder the right to choose currencies for interest payment and principal...

Par Bond

A bond that trades in the market at its par value (face value). In other words, parity implies that the...