Investors will realize a slightly higher yield if the called bonds are paid off at a premium.
The five-year bonds, called India Development Bonds, came with insurance against exchange-rate risk and promises not to scrutinise the source of the investment.
Companies with outstanding bonds called them and issued new bonds at lower rates.
By 1973 there were more than 200 firms making market in what was later called junk bonds.
Those so-called I bonds are now yielding a bit less than 4%.
Lloyds TSB was not the only seller of these so-called precipice bonds, but the Financial Services Authority (FSA) thinks it was particularly aggressive at it.
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The so-called Brady bonds, trading at 60 cents on the dollar, are supported by 30 cents per bond in U.S. Treasury holdings, making for a floor in value.
Mr Jarnefelt's specialist area - German government bonds - is among the most stable in the market because, along with those issued by the US (called Treasury bonds), they are seen as among the lowest risk in the world.
Forging a fiscal union to bolster the euro is likely to mean agreeing to controversial measures such as more co-ordination on taxes and launching "eurobonds" - called "stability bonds" by the Commission.
When it was a subsidiary of AIG, American General Finance, as Springleaf used to be called, issued bonds at interest rates of 5% to 7% and made loans at rates that often topped 10%.
Under new rules for sovereign bonds called OFZ and other local debt instruments, foreigners can tap in directly through the Euroclear service, bypassing the current need to have a Russian broker on the ground somewhere in Moscow or St.
Many of the newer bonds, called Enhanced Equipment Trust Certificates, were sold in three tranches.
What if interest rates fall and the bonds get called in early?
Bill Gross, the founder of fund company PIMCO and often called the King of Bonds, says in his August Investment Outlook that the cult of equity is dead.
But both think that disposals of businesses and the issue of new-fangled loss-absorbing bonds, called CoCos, will cover most of that (as it happens, Barclays flogged some of these today).
More than seven years have passed since Bonds was called to testify before the grand jury, and nearly three and a half years have passed since he was first charged with lying to it.
To do so, it issues 5-year bonds, also called notes, with a 7% coupon rate.
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The risk with the former strategy is that the new, high-coupon bonds could get called.
Japan's economy minister said Tokyo might consider increasing purchases of European bailout bonds, but called on leaders to bring spending under control.
Nonetheless, it is exactly in "difficult times" that we are called upon to reinforce the bonds of solidarity rather than personal interest.
The first is a very good treatise offered by the American Association of Individual Investors (AAII) called How to Buy Individual Bonds: A Fixed-Income Toolkit.
In the private sector, companies' long-term bonds can be called in 5 years or 10 years after issuance, even if the bond's maturity is, say, 25 years.
Although U.S. Corrugated, a paper and pulp company, is not a household name, and a complicated stand alone investment, a lot of corporate bonds that are called or an event to create an early redemption such as a mergers and acquisitions occur regularly.
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The bonds may have been called junk, but the assets weren't.
Had they switched into new bonds paying more like 12%, those bonds would have been called away as interest rates subsided in the late 1980s, and the investors would have suffered a permanent erosion of capital.
In Mr. Zimmerman's view, gold is an investment that likely will benefit if inflation ever picks up, or if financial markets turn unhealthy as investors chase stocks and risky bonds, something generally called "asset inflation, " as seen in the U.S. housing bubble.
Most tobacco bonds have a so-called turbo structure (rather like a sinking fund).
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They were 30 year bonds, so unless they were called at some point (likely), they would have matured recently for anyone who held them that long.
They performed this trick, as they explain in the journal Langmuir, using a substance called phenyl azido, which readily forms covalent bonds with its neighbours when exposed to ultraviolet light.
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