Conditional Call Option
Definition
A type of protection on some high-yield bonds that obligates the issuer of the bond to substitute a high-yield bond for a non-callable bond of similar terms and maturity dates to the investor in the event that the original bond is called. Therefore, if a high-yield bond is called, the issuing company must substitute this with a similar non-callable bond that will mature at approximately the same time as the original bond.
Nearby Terms
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