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Step-Up Bond

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Dictionary Says

Definition of 'Step-Up Bond'

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

Investopedia explains 'Step-Up Bond'

In other words, the coupon "steps up". For example a five-year bond may pay a 4% coupon for the first two years of its life and a 6% coupon for the final three years.

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