Corporate Bond Coupons, Payment Structures

Bullet Bond

A bond that cannot be redeemed prior to maturity.

Callable Bond

A condition of a bond permitting the issuer to redeem it, before maturity, on specified dates at specified prices. Bloomberg abbreviates callable as CALL.

Convertible Bond

Convertible Bond.A bond containing a provision that permits conversion to the issuer's common stock at some fixed exchange ratio.

Puttable Bond

A traditional bond or note with an embedded put which permits the bond holder to sell the notes back to the issuer, usually at par. This put gives the holder some protection from loss of principal due to higher interest rates or credit deterioration of the issuer. Also called Adjustable Tender Securities.

PIK Bond

Bonds whose coupon payments are paid in the form of additional bonds. Often used to finance takeovers.