A bond with floating coupon payments that are adjusted at specific intervals. The bond is payable to the bondholder upon demand following an interest rate change. Generally, the current money market rate is what is used to set the interest rate, plus or minus a set percentage. As a result of this, the coupon payments can change over time.

Although a demand bond can be redeemed at any time, bondholders are often encouraged to keep the bonds in order to continue receiving coupon payments. The floating rate of the coupon payment contributes to higher uncertainty in coupon cash flows compared to generic bonds. Some of this risk is mitigated by the redemption option.

www.jstor.org [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

onlinelibrary.wiley.com [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

papers.ssrn.com [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

www.journals.uchicago.edu [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

pubs.aeaweb.org [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

journals.sagepub.com [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

www.sciencedirect.com [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

www.nber.org [PDF]

… analytical solutions and numerical results we require a specific model for the state variables … When variable rate notes were first introduced in 1974, they were usually redeemable at … More recently, floating rate notes have guaranteed a minimum rate of interest payment-either …

Tags:2009authoritybankbondbondscapitalcreditdebtdemanddevelopmenteconomiceconomicsexemptfinancefinancialfixedfundshousinginterestissuedissuerlongmarketmoneymunicipalnotenotesnovemberobligationobligationspayableprimerprojectrateratesremarketingrevenuerisksecuritiesseriestermvariablevrdnvrdovrdoswashington

## Leave a Reply