easy · Debt Capital Markets
What is meant by the 'bond floor' in the context of yield analysis?
- The minimum coupon rate that an issuer is allowed to set at launch.
- The par value of the bond which serves as the final principal repayment.
- The lowest price a bond can reach before it is considered in default.
- The value of a bond as a straight, option-free instrument, excluding any embedded options.
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