Corporate Bonds

Archive for February, 2007

Callable Step Up Corporate Bonds

Q: What is a step up corporate bond?

A: A step up corporate bond is a callable security with a coupon rate that increases or steps-up according to a preset schedule until the corporate bond matures or is called. 

The initial coupon rate is locked in and paid to investors until the first call date. 

At that time one of two things will occur:

If the corporate bond is called, it will be redeemed at par, plus any interest accrued to the call date. 

If the corporate bond is not called, the coupon rate is reset according to the preset schedule. 

This process continues until the corporate bond is either called or reaches its final maturity. 

Callable step up Corporate Bonds typically offer higher yields than comparable-quality, noncallable Corporate Bonds.

Question: In yesterday’s election, what Propositions do Liberals/Conservatives generally support?

1A. Transportation Funding Protection. Legislative Constitutional Amendment.
1B. Highway Safety, Traffic Reduction, Air Quality
1C. Housing and Emergency Shelter Trust Fund Act
1D. Kindergarten-University Public Education Facilities Bond Act
1E. Disaster Preparedness and Flood Prevention Bond Act
83. Sex Offenders. Sexually Violent Predators. Punishment.
84. Water Quality, Safety and Supply. Flood Control. Natural Resources Protection. Park Improvements.
85. Waiting Period and Parental Notification Before Termination of Minor’s Pregnancy.
86. Tax on Cigarettes.
87. Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers.
88. Education Funding, Real Property Parcel Tax. Initiative Constitutional Amendment and Statute.
89. Political Campaigns. Public Financing. Corporate Tax Increase. Campaign Contributions and Expenditure Limits. Initiative Statute.
90. Government Acquisition, Regulation of Private Property.

Answer: Liberals-
First we did not have this many in my state to vote on (Tn).
I support Increasing minimum wage…Governtment should NOT be ablet to acquire private porperty…Waiting period and Parnetal / Or other Adult ..the wording is important to protect for the unlikely but possible incidence of molestation by parent or guardian…Reduction of Student Loan interest rates…. Alternative energy plan, one that asks for results….

Investing In Corporate Bonds – Should You Buy Corporate Bonds?