A "Liquid Yield Option Note" or "LYON" is a zero-coupon bond issued by a corporation, which also gives the holder the right to convert the bond into stock of the corporation within a specified period and for a specific conversion price. The bond pays no interest until it is redeemed at or before maturity; the difference between the issue price and the redemption price represents the accrued interest. LYONs are synthetic securities that were developed by, and a trademark of, Merrill Lynch. LYONs are redeemable (callable) by the issuer and can be put by the holder.