In principle, the issuer of this type of bond has the option of changing the bond terms. He uses this conversion, for example, to lower the interest rate or to extend or shorten the term. The prerequisite for conversion is that the bond is callable under the contractual terms applicable up to that point. – According to an old banking rule (banking rule based on experience), a bond debtor who has to reduce the interest rate without giving notice is half-bankrupt. – See bond, floating rate
interest-bearing, euro bonds, floater, floor, bearer bond, on, conversion premium call option, step-down bond, conversion.
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