A fixed income security offering investors a high coupon payment that does not see as much of a decline in price due to rising interest rates than other bonds experience, and does not see as much of a price increase due to falling interest rates. A cushion bond sells at a premium. "Cushion" refers to the soft landing that the bond experiences during interest rate fluctuations.
Related information about cushion bond:
- Cushion Bond Definition | Investopedia
A type of callable bond that sells at a premium because it carries a coupon rate that is above market interest rates. A cushion bond's call feature means that it will ...
- Cushion Bond - Financial Dictionary - The Free Dictionary
A callable bond with coupons that are above prevailing interest rates. A cushion bond is more expensive than other bonds. If interest rates rise, the value of a ...
- What is cushion bond? definition and meaning
Definition of cushion bond: A fixed income security offering investors a high coupon payment that does not see as much of a decline in price due to rising interest ...
- Cushion Bonds - Blackhaw Wealth Management
The cushion bond - a callable bond trading at a premium to par value - offers the potential for higher return in a low rate environment, while providing protection ...
- cushion bond - Invest Definition
cushion bond definition: A high-coupon bond that sells at a price only slightly above par ... A cushion bond has an unusually high current yield, little chance...
- Cushion Bond: Definition from Answers.com
callable bond with a coupon above current market interest rates that is selling for a premium. Cushion bonds lose less of their value as rates rise and.
- What is CUSHION BOND? - The Law Dictionary
Definition of CUSHION BOND: A CALLABLE BOND with a high COUPON that is selling for a PREMIUM. The cushion bond loses less value as rates rise and ...
- cushion bond - Municipal Securities Rulemaking Board
CUSHION BOND – A bond trading at a higher dollar price than current coupon rates that is priced to the call and creates a substantially higher yield to maturity ...