A step-up callable bond whose initial coupon is well above market rates (for vanilla bonds) and which allows more than one step-up (increase) in its coupon over the bond‘s life. This will have the effect of building up pressure on the issuer to call or redeem the bond before maturity (at all coupon dates beyond the first call date). The bond might be callable every six months. This effectively constitutes a Bermudan call option written by the bondholders (investors) to the issuer on the bond.