CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Step-up notes are ______.
A. bonds that have coupon payments that reset periodically according to some reference rate
B. bonds that have no coupon payment for a deferred period
C. securities that have a coupon rate that increases over time
Explanation: Step-up notes are securities that have a coupon rate that increases over time.

User Contributed Comments 2

User Comment
bloomt What is meant by 'coupon rate reset'? Will that always be a drop in coupon or can the rate move either direction?
Jorgensen only ratchet bonds have an optional fixed drop in the coupon payment every time it resets..
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