Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'step up bond'?

A. bond that is backed by collateral, such as a tangible asset or income stream, in addition to a general promise to pay
B. bond with a coupon that increases (steps up) while the bond is outstanding
C. bond issued with a coupon rate of zero and that trades at a deep discount to face value
D. a short-term debt security that gives the owner the unconditional right to receive a stated, fixed sum of money on a specified date

Answer: bond with a coupon that increases (steps up) while the bond is outstanding