Bonds may have a ____, which gives the holder of the bond the right to sell it back to the issuer under certain conditions.

Question

Quizplus · Accepted Answer

A put option on a bond gives the holder the right to sell the bond back to the issuer at a specified price and time. This can provide additional flexibility and protection for the bondholder in certain circumstances. Warrants, rights offerings, and call options are different types of financial instruments that may be associated with bonds, but they do not provide the same sell-back rights as a put option.

Bonds May Have a ____, Which Gives the Holder of the Bond