Kombizinsanleihe

English translation: split-coupon bond

19:11 Apr 16, 2008
German to English translations [PRO]
Bus/Financial - Investment / Securities / Bonds
German term or phrase: Kombizinsanleihe
I believe this is a type of step-up bond, in which the bond holder receives no interest in the first few years and high interest in the next few years. I can't seem to find an English term for this, though..
Mary McCusker
Local time: 06:33
English translation:split-coupon bond
Explanation:
For a split-coupon bond, the interest rate does not remain constant over the entire term. However, the amount of interest earned is fixed in advance and does not depend on developments on the capital markets. The interest rate changes according to a schedule agreed at the time of issue. The agreement generally provides for several interest-free years with an above-average coupon for the remaining years.
Selected response from:

Ralf Lemster
Germany
Local time: 12:33
Grading comment
Many thanks
4 KudoZ points were awarded for this answer



Summary of answers provided
4split-coupon bond
Ralf Lemster


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Answers


18 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
split-coupon bond


Explanation:
For a split-coupon bond, the interest rate does not remain constant over the entire term. However, the amount of interest earned is fixed in advance and does not depend on developments on the capital markets. The interest rate changes according to a schedule agreed at the time of issue. The agreement generally provides for several interest-free years with an above-average coupon for the remaining years.


    Reference: http://www.db.com/lexikon/lexikon_de/content/index_e_1178.ht...
Ralf Lemster
Germany
Local time: 12:33
Specializes in field
Native speaker of: German
PRO pts in category: 475
Grading comment
Many thanks
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