Bond Interchangeability

Derivatives
Forward Swaption
February 11, 2021
Finance
Bond Total Return
February 12, 2021

A bond‘s ability to convert from one form to another. Typically, an interchangeable bond can be converted from coupon payment mode (coupon bond) to registered form (registered bond), or the other way around. However, when a bond issue combines both coupon and registered forms, the effect of interchangeability would be attained by the sale of one form and the purchase of another.

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