first question: definition of 10nc3
A callable municipal, corporate, federal agency or government security gives the issuer of the bond the right to redeem it at predetermined prices at specified times prior to maturity. Take, for example, a U.S. agency 10-year note noncallable for 3 years, maturing in 10 years, which can be “called” or redeemed by the agency issuer at the end of the third year after issuance—known as a “10nc3.” The three-year noncallable period is known as the “lockout” period.
Supplementary: it is Europ Option because only after first 3 years the issuer has the right to redeem. American Option means any time during 3 year option can be executed. |
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