Stub period: Difference between revisions

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In finance, in particular with reference to bonds and swaps, a stub period is a length of time over which interest accrues are not equal to the usual interval between bond coupon.

These periods normally occur because the interval between coupons does not fit neatly into the period for which the bond was issued, thus sometimes a bond's final or first coupon period may be adjusted to make the bond start and mature on the desired dates.

References

External links

Interest Calculations and the Impact of Stub Periods

This finance-related article is a stub. You can help Wikipedia by expanding it.

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 {{Short description|Bonds/swaps anomaly}}
-In [[finance]], in particular with reference to [[Bond (finance)|bonds]] and [[Swap (finance)|swaps]], a '''stub period''' is a period of time over which [[interest]] accrues are not equal to the usual interval between [[Coupon (bond)|bond coupon]].
+In [[finance]], in particular with reference to [[Bond (finance)|bonds]] and [[Swap (finance)|swaps]], a '''stub period''' is a length of time over which [[interest]] accrues are not equal to the usual interval between [[Coupon (bond)|bond coupon]].
-These normally occur because the interval between coupons does not fit neatly into the period that the bond was issued for, thus sometimes a bond's final or first coupon period may be adjusted to make the bond start and mature on the desired dates.
+These periods normally occur because the interval between coupons does not fit neatly into the period for which the bond was issued, thus sometimes a bond's final or first coupon period may be adjusted to make the bond start and mature on the desired dates.
 ==References==