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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Step-up bond  

Definition 1.

A bond that pays a lower coupon rate for an initial period, and then increases to a higher coupon rate. Related: Deferred-interest bond, payment-in-kind bond.
 

Definition 2.

A bond that pays one coupon rate for an initial period followed by a higher coupon rate.
 

Definition 3.

A bond that pays an initial coupon rate for the first period, and then a higher coupon rate for the following periods.
 
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