NISM Series IV: Currency Derivatives Certification Exam Notes
Page 7 Of 100
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Perpetual Bonds: No maturity, pay coupons indefinitely, issuer may have call options.
Annuities: Provide regular payments, non-tradable, used in loans.
AT1 Bonds: Perpetual, non-convertible, used for bank Tier 1 capital under Basel III.
AT2 Bonds: Subordinated, minimum 5-year term, used for bank Tier 2 capital.
Convertible Bonds: Can be converted to equity at a pre-fixed price.
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