Exchange Currency

liquid yield option note

LYON. Merrill Lynch's proprietary callable bond that combines the features of zero-coupon bonds with convertibility into a fixed number of shares of common stock. In this arrangement, the bond is issued at a large discount on the par value. It is puttable by the holder at his/her option for cash according to a schedule of rising exercise prices, and is callable by the issuer according to another schedule of rising exercise prices. Offered usually by corporations with investment-grade rating and broad name recognition but having volatile equity, LYON was introduced in 1985 and has proved popular with risk-averse investors.

Related information about liquid yield option note:
  1. Liquid Yield Option Note (LYON) Definition | Investopedia
    A zero coupon bond that is callable (by issuer), putable (by investor), and convertible. LYONs are synthetic products that are financially engineered by Merrill ...
     
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    Definition of Liquid Yield Option Note in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Liquid Yield Option Note?
     
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  5. Liquid Yield Option Note (LYON)
    A zero coupon convertible, callable (by the issuer), puttable (by the investor) bond issued by a corporation. The combination of LYON features usually assures ...
     
  6. Liquid yield option note (LYON) - Bizterms.net
    Similar financial terms. Liquidity risk on bonds. The primary measure of liquidity is the size of the bid-ask spread. Liquidity risk depends on the ease with which ...
     
  7. Liquid yield option note (LYON) - Financial Definition
    Financial Definition of Liquid yield option note (LYON) and related terms: Zero- coupon, callable, putable, convertible bond invented by Merrill . Zero-co...
     
  8. LYON - Liquid Yield Option Note
    Acronym Finder: LYON stands for Liquid Yield Option Note.