… rising underlying prices?
When the underlying price rises, investors receive the bonus payment at the end of the term. If the certificate is not capped, investors participate directly in the performance of the underlying once the price of the underlying is above the bonus level.
… stable underlying prices?
When the underlying price is stable, investors receive the bonus payment (sideways yield) at the end of the term.
… falling underlying prices?
When the underlying price falls, investors receive the bonus payment at the end of the term as long as the price of the underlying has not fallen to or below the barrier. In the latter case, there is no bonus payment and the certificate follows the performance of the underlying (i.e. losses are possible).