Fixed-Rate Bonds

Callable Bonds
Fixed-rate bonds wherein the issuer holds the right, but not the obligation, to redeem the bond at par value or at a premium during its lifetime. Callable bonds often include a grace period where the issuer cannot call the bond, with conversion possible later if specific conditions are met.
Drop Lock
Drop Lock is a financial mechanism applied to bonds initially issued with variable rates of interest, converting them into fixed-rate bonds upon the occurrence of a trigger event such as the underlying index or interest rate falling below a pre-set threshold.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.