Call risk and Coupon: Difference between pages

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The risk to a lender/investor from the potential calling - for early redemption - of a callable bond.
1.  
It gives the investor the unexpected problem of re-investing their money returned early. 


So if interest rates have fallen the investor will receive a lower than expected return, for the unexpired term of the original (callable) bond.
The fixed amount of periodic interest paid by a coupon bond over its life.
 
 
2.
 
Abbreviation for Coupon rate.




== See also ==
== See also ==
* [[101 call protection]]
* [[Accrued interest ]]
* [[Call]]
* [[Asset-based swap]]
* [[Call protection]]
* [[Average effective maturity]]
* [[Callable bond]]
* [[Average nominal maturity]]
* [[Hard call protection]]
* [[Bond]]
* [[Make whole clause]]
* [[Coupon bond]]
* [[Soft call protection]]
* [[Coupon rate]]
* [[Spens clause]]
* [[Coupon strip]]
* [[Foreign currency bond]]
* [[Nominal value]]
* [[Nominal yield]]
* [[Paying agent]]
* [[Principal]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]

Revision as of 21:56, 6 August 2020

1.

The fixed amount of periodic interest paid by a coupon bond over its life.


2.

Abbreviation for Coupon rate.


See also