What is a Straight Bond?

Definition: A Straight Bond is a bond, with a fixed interest and repayment date. Straight Bonds are the most common bonds. They are considered as the "normal case". As soon as the interest payment or the repayment is linked to additional terms, the bond can't be a Straight Bond anymore (i.e. Perpetuals, Zero-bonds, Floaters).

 

Example of a Straight Bond

ISIN: CH0127181011

Debtor: Swiss Confederation

Life-time: 2011-05-25 - 2022-05-25

Nominal Currency: CHF

Interest Coupon: 2%

Issue price: 100.10%

Repayment price: 100.0%

 

Characteristics of the Straight Bond

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straight-bond