Step-up coupon bond and eurobond

Dear all,

2 questions regarding fixed income.

Question 1:I understand from Schwesers Notes that there is a call feature attached to step-up bond. Can I say that step-up bond is a call option with step-up bond as the underlying asset?

Question 2: I tried my best to comprehend what has been written in explaining eurobond but to no avail; can someone further simplify the explanations further?

Thank You.

Cheers,

Ernest

You could think of it that way.

A eurobond is a bond denominated in a currency other than that of the country in which it is issued.

If a bond were issued in the U.S. and denominated in anything other than USD (e.g., CAD, EUR, GBP, JPY, AUD, and so on), it would be a eurobond. If a bond were issued in the United Kingdom and denominated in anything other than GBP (e.g., CAD, EUR, USD, JPY, AUD, and so on), it would be a eurobond.

And so on.

Some eurobonds are named for the currency in which they are denominated. A eurobond denominated in USD (issued outside the U.S.) is known as a eurodollar bond. A eurobond denominated in yen (issued outside Japan) is known as a euroyen bond. And so on.

You’re welcome.

doubts cleared. awesome and thanks.

A clarification for the step-up bond: the call option is owned by the issuer. The issuer can think of it as owning a call option with a step-up bond (on which they’re paying) as the underlying; the bondholder can think of it as being short a call option with a step-up bond that they own as the underlying.