Liquid Yield Option Note - LYON
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Definition of 'Liquid Yield Option Note - LYON'
A zero coupon bond that is callable (by issuer), putable (by investor), and convertible. LYONs are synthetic products that are financially engineered by Merrill Lynch.
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Investopedia explains 'Liquid Yield Option Note - LYON'
A LYON typically assures the holder a positive return. This return is maintained until the opportunity to put the security back to the issuer at a premium over the issue price no longer exists.
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