A puttable provision in a bond allows the
A)issuer to call the bond at par on the coupon payment date.
B)holder to redeem the bond at par before maturity.
C)issuer to extend the maturity of the bond.
D)holder to extend the maturity of the bond.

Question

Quizplus · Accepted Answer

A puttable provision in a bond allows the holder to redeem the bond at par before maturity. This gives the holder the option to sell the bond back to the issuer if interest rates rise or if they need to liquidate their investment for any reason.

A Puttable Provision in a Bond Allows the