{"id":13507,"date":"2026-05-14T06:53:00","date_gmt":"2026-05-14T06:53:00","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=13507"},"modified":"2026-05-12T12:09:58","modified_gmt":"2026-05-12T12:09:58","slug":"step-up-vs-step-down-interest-rate-bonds","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/","title":{"rendered":"Step-Up vs Step-Down Interest Rate Bonds Explained"},"content":{"rendered":"\n<p>Most bonds pay the same interest rate every year. You lock in at 9% and 9% is what you earn from start to finish. Simple.<\/p>\n\n\n\n<p><strong>Step-up<\/strong> and <strong>step-down bonds<\/strong> don&#8217;t work that way. The interest rate changes at specific points during the tenure. This affects how much you earn, when you earn it and whether the bond makes sense for your situation.<br><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#What_Is_a_Step-Up_Bond\" >What Is a Step-Up Bond?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#What_Is_a_Step-Down_Bond\" >What Is a Step-Down Bond?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#Step-Up_vs_Step-Down_vs_Flat_Rate_Whats_Different\" >Step-Up vs Step-Down vs Flat Rate: What&#8217;s Different<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#The_Blended_Yield_What_You_Actually_Earn\" >The Blended Yield: What You Actually Earn<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#What_to_Verify_in_the_Term_Sheet\" >What to Verify in the Term Sheet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/#FAQs_on_Step-Up_and_Step-Down_Bonds\" >FAQs on Step-Up and Step-Down Bonds<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Step-Up_Bond\"><\/span><strong>What Is a Step-Up Bond?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a step-up bond, the interest rate increases over time. The full schedule is written into the bond at issuance. You know every rate change before you invest.<\/p>\n\n\n\n<p>A typical step-up structure might look like this:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Period<\/strong><\/td><td><strong>Interest Rate<\/strong><\/td><\/tr><tr><td>Year 1 to Year 2<\/td><td>8.5% p.a.<\/td><\/tr><tr><td>Year 3 to Year 4<\/td><td>9.5% p.a.<\/td><\/tr><tr><td>Year 5<\/td><td>10.5% p.a.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>You earn less in the early years and more later. The issuer pays less upfront and more as the bond matures.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Related Post<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"486\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08110157\/municipal_bonds_india_1160x550-1024x486.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"municipal_bonds_india_1160x550\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08110157\/municipal_bonds_india_1160x550-1024x486.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08110157\/municipal_bonds_india_1160x550-300x142.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08110157\/municipal_bonds_india_1160x550-768x364.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08110157\/municipal_bonds_india_1160x550.jpg 1160w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/municipal-bonds-in-india\/\">Municipal Bonds in India: What Retail Investors Should Know Before Investing<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><img decoding=\"async\" width=\"731\" height=\"347\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/04\/02033827\/Blog-12_-5-Reasons-Why-Bonds-Are-Your-Best-Friend-During-Market-Crashes.png\" class=\"attachment-large size-large wp-post-image\" alt=\"5 Reasons Why Bonds Are Your Best Friend During Market Crashes\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/04\/02033827\/Blog-12_-5-Reasons-Why-Bonds-Are-Your-Best-Friend-During-Market-Crashes.png 731w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/04\/02033827\/Blog-12_-5-Reasons-Why-Bonds-Are-Your-Best-Friend-During-Market-Crashes-300x142.png 300w\" sizes=\"(max-width: 731px) 100vw, 731px\" \/><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/\">5 Reasons Why Bonds Are Your Best Friend During Market Crashes<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"486\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/02\/09101742\/Blog-Banner-1024x486.png\" class=\"attachment-large size-large wp-post-image\" alt=\"NITI Aayog\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/02\/09101742\/Blog-Banner-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/02\/09101742\/Blog-Banner-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/02\/09101742\/Blog-Banner-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/02\/09101742\/Blog-Banner.png 1160w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-niti-aayog-plans-to-strengthen-indias-corporate-bond-market\/\">How NITI Aayog Plans to Strengthen India\u2019s Corporate Bond Market?<\/a><\/li>\n<\/ul>\n\n\n<h3 class=\"wp-block-heading\"><strong>Why issuers use this structure<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies expecting their cash flows to improve over time find this useful<\/li>\n\n\n\n<li>Some step-up bonds are structured so the rate increases automatically if the issuer&#8217;s credit rating falls, compensating you for added risk<\/li>\n\n\n\n<li>Early-stage companies with tighter near-term cash flows sometimes prefer this format<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What it means for your returns<\/strong><\/h3>\n\n\n\n<p>Your blended return over the full tenure is what matters. Calculate it before comparing to <a href=\"https:\/\/goldenpi.com\/collections\/bonds-to-earn-monthly-fixed-income\">flat-rate bonds<\/a>. The step-up bond in the example above has a blended yield of 9.5% over 5 years, but you receive less than that in the first two years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Step-Down_Bond\"><\/span><strong>What Is a Step-Down Bond?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a step-down bond, the interest rate decreases at defined intervals. The issuer pays a higher rate early on and less later.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Period<\/strong><\/td><td><strong>Interest Rate<\/strong><\/td><\/tr><tr><td>Year 1 to Year 2<\/td><td>10.5% p.a.<\/td><\/tr><tr><td>Year 3 to Year 4<\/td><td>9.5% p.a.<\/td><\/tr><tr><td>Year 5<\/td><td>8.5% p.a.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>You earn more in the early years. The headline rate looks attractive, but it won&#8217;t hold for the full tenure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why issuers use this structure<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Issuers with strong current cash flows can afford a higher early coupon<\/li>\n\n\n\n<li>Useful in project finance, where revenues are highest in the early operating phase<\/li>\n\n\n\n<li>Sometimes used to attract investors with a high initial rate<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What it means for your returns<\/strong><\/h3>\n\n\n\n<p>Your early cash flows are higher, which works in your favour if you plan to reinvest them. But the overall blended yield is lower than the opening rate suggests. Run the numbers before comparing them to a flat-rate alternative.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-Up_vs_Step-Down_vs_Flat_Rate_Whats_Different\"><\/span><strong>Step-Up vs Step-Down vs Flat Rate: What&#8217;s Different<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All three structures can carry the same blended yield, but when and how that yield arrives differs significantly. Here&#8217;s how they compare.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Step-Up<\/strong><\/td><td><strong>Step-Down<\/strong><\/td><td><strong>Flat Rate<\/strong><\/td><\/tr><tr><td><strong>Rate in early years<\/strong><\/td><td>Lower<\/td><td>Higher<\/td><td>Same throughout<\/td><\/tr><tr><td><strong>Rate in later years<\/strong><\/td><td>Higher<\/td><td>Lower<\/td><td>Same throughout<\/td><\/tr><tr><td><strong>Blended yield<\/strong><\/td><td>Must calculate separately<\/td><td>Must calculate separately<\/td><td>Equal to stated rate<\/td><\/tr><tr><td><strong>Early cashflow<\/strong><\/td><td>Lower<\/td><td>Higher<\/td><td>Consistent<\/td><\/tr><tr><td><strong>Reinvestment advantage<\/strong><\/td><td>Later years<\/td><td>Early years<\/td><td>Spread evenly<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Blended_Yield_What_You_Actually_Earn\"><\/span><strong>The Blended Yield: What You Actually Earn<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Say you invest Rs. 1 lakh in a 3-year step-up bond:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Year 1: 8% = Rs. 8,000<\/li>\n\n\n\n<li>Year 2: 9% = Rs. 9,000<\/li>\n\n\n\n<li>Year 3: 10% = Rs. 10,000<\/li>\n\n\n\n<li>Total interest: Rs. 27,000<\/li>\n<\/ul>\n\n\n\n<p>The blended yield is 9% per annum. A flat-rate bond at 9% gives the same total interest, just in equal portions each year.<\/p>\n\n\n\n<p><em>The step-up bond isn&#8217;t better or worse in terms of total return. The difference is in timing.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_Verify_in_the_Term_Sheet\"><\/span><strong>What to Verify in the Term Sheet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>What to check<\/strong><\/td><td><strong>Why it matters<\/strong><\/td><\/tr><tr><td>Full rate schedule<\/td><td>Know each rate and when it applies<\/td><\/tr><tr><td>Blended yield<\/td><td>Compare fairly against flat-rate bonds<\/td><\/tr><tr><td>Call option<\/td><td>The issuer can redeem before the higher step-up rate kicks in<\/td><\/tr><tr><td>Rate change trigger<\/td><td>Is the change automatic, or conditional on a credit event?<\/td><\/tr><tr><td>Interest payment frequency<\/td><td>Quarterly or annual affects your actual cash flow<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>Do note that some step-up bonds include a conditional rate trigger: the rate steps up only if the issuer&#8217;s rating falls below a specified level. Check whether your bond&#8217;s step-up is automatic or conditional before investing.<\/p>\n\n\n\n<p>GoldenPi enters in this journey to enhance your experience of exploring and comparing the bonds and fixed deposits. Here you can check and know more about the bonds and it&#8217;s terminologies etc. Visit &#8211;  <a href=\"https:\/\/goldenpi.com\/\">GoldenPi<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Step-Up_and_Step-Down_Bonds\"><\/span><strong>FAQs on Step-Up and Step-Down Bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1778581567551\"><strong class=\"schema-faq-question\"><strong>Q1. What is a step-up bond?<\/strong><br\/><\/strong> <p class=\"schema-faq-answer\">A step-up bond is a bond where the interest rate increases at set points during the tenure. The schedule is fixed at issuance. You earn a lower rate early on and a higher rate in later periods.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778581576686\"><strong class=\"schema-faq-question\"><strong>Q2. What is a step-down bond?<\/strong><\/strong> <p class=\"schema-faq-answer\">A step-down bond pays a higher interest rate early in the tenure and a lower rate later. The rate schedule is written into the bond at issuance.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778581585387\"><strong class=\"schema-faq-question\"><strong>Q3. How do I calculate the real return on a step-up bond?<\/strong><\/strong> <p class=\"schema-faq-answer\">Add up the interest you&#8217;d earn in each period using the scheduled rates. Divide the total by the number of years. That&#8217;s your blended yield. Use that number when comparing against flat-rate bonds of similar tenure and credit quality.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778581597358\"><strong class=\"schema-faq-question\"><strong>Q4. Can an issuer call a step-up bond before the higher rate applies?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, if the bond has a call option. Some issuers redeem just before a step-up date to avoid paying the higher rate. Check whether a call option exists, when it can be exercised and what the call price is. This is in the Redemption or Call Options section of the term sheet.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778581604594\"><strong class=\"schema-faq-question\"><strong>Q5. Are step-up and step-down bonds common in India?<\/strong><\/strong> <p class=\"schema-faq-answer\">They appear in corporate bonds and NCDs, particularly from NBFCs and infrastructure companies. They&#8217;re less common than flat-rate bonds. When you come across one, calculate the blended yield and check for call options before making a comparison with other bonds in the market.<\/p> <\/div> <\/div>\n\n\n\n<p><em>Disclaimer: <\/em><em>Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities, municipal debt securities\/securitised debt instruments are subject to credit risks, market risks and default risks including delay and\/or default in payment. Read all the offer related documents carefully.<\/em><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n[\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"Article\",\n    \"mainEntityOfPage\": {\n      \"@type\": \"WebPage\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/financial-matters\/step-up-vs-step-down-interest-rate-bonds\/\"\n    },\n    \"headline\": \"Step-Up vs Step-Down Interest Rate Bonds Explained\",\n    \"description\": \"A comprehensive guide on how step-up and step-down interest rate structures work in corporate bonds and NCDs, featuring blended yield calculations and risk analysis.\",\n    \"image\": \"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/12102957\/step_up_vs_step_down_bonds_1160x550-1.jpg\",\n    \"author\": {\n      \"@type\": \"Person\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/kunal-arora\",\n      \"name\": \"Kunal Arora\",\n      \"jobTitle\": \"Chartered Accountant\",\n      \"url\": \"https:\/\/goldenpi.com\/blog\/author\/kunal-arora\/\",\n      \"description\": \"Kunal Arora is a Chartered Accountant and finance expert with over 8 years of expertise in navigating the complex financial heart of India\u2019s leading NBFCs.\",\n      \"sameAs\": [\n        \"https:\/\/www.linkedin.com\/in\/ca-kunal-arora-005299158\/\"\n      ]\n    },\n    \"publisher\": {\n      \"@type\": \"Organization\",\n      \"name\": \"GoldenPi\",\n      \"logo\": {\n        \"@type\": \"ImageObject\",\n        \"url\": \"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/05\/18105628\/GoldenPi-Lean-Logo.png\"\n      }\n    },\n    \"datePublished\": \"2026-05-12T10:37:21+00:00\",\n    \"dateModified\": \"2026-05-12T10:37:09+00:00\",\n    \"about\": [\n      {\n        \"@type\": \"FinancialProduct\",\n        \"name\": \"Corporate Bond\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Corporate_bond\"\n      },\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Yield to Maturity\",\n        \"alternateName\": \"Blended Yield\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Yield_to_maturity\"\n      }\n    ],\n    \"mentions\": [\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Call option\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Call_option\"\n      },\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Credit rating\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Credit_rating\"\n      },\n      {\n        \"@type\": \"FinancialProduct\",\n        \"name\": \"Non-Convertible Debenture\",\n        \"alternateName\": \"NCD\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Debenture\"\n      }\n    ]\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is a step-up bond?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"A step-up bond is a bond where the interest rate increases at set points during the tenure. The schedule is fixed at issuance. You earn a lower rate early on and a higher rate in later periods.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is a step-down bond?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"A step-down bond pays a higher interest rate early in the tenure and a lower rate later. The rate schedule is written into the bond at issuance.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"How do I calculate the real return on a step-up bond?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Add up the interest you'd earn in each period using the scheduled rates. Divide the total by the number of years. That's your blended yield. 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