Liquid Yield Option Note - LYON
A zero coupon bond that is callable (by issuer), putable (by investor), and convertible. LYONs are synthetic products that are financially engineered by Merrill Lynch.
Investopedia Commentary
A LYON typically assures the holder a positive return. This return is maintained until the opportunity to put the security back to the issuer at a premium over the issue price no longer exists.
See also: Convertible Bond, Merrill Lynch, Zero Coupon Bond
Also spelled: LYON