Exact(4)
Bonds such as these are relatively new and investors have been attracted to them because they pay relatively high coupons, or returns, to investors.
One way to improve on this without adding risk is to buy so-called premium Treasury bonds, those with relatively high coupons selling above their face value and carrying a higher price.
Those who bought fixed-rate capital note preferreds with high coupons, issued by the troubled banks in 2008, thought they would be safe from call until 2013.
If, on the other hand, the bond is called later (or never), you wind up with a yield that is much better than you bargained for, because your premium is buying you more years of high coupons.
Similar(4)
P.R.D.C. bonds were often structured to carry a high coupon, or payout, for the first year.
Lloyds is paying a fairly high coupon of 10-11% to attract buyers to this novel security.
"When rates were 15percentt in 1981," he said, "you could lose 15percentt of your principal and still break even because of the high coupon payments.
There we're collecting a high coupon.
Related(1)
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com