Put provisions in bonds allow:
A) the issuer to call the bond at par on the coupon payment date.
B) the holder to redeem the bond at par on the coupon payment date.
C) the issuer to extend the maturity of the bond.
D) the holder to extend the maturity of the bond.
E) the issuer to change the coupon rate on the coupon payment date.

Question

Quizplus · Accepted Answer

Put provisions allow the bondholder to redeem the bond at par value on specified dates, typically on coupon payment dates, providing the holder with the option to sell the bond back to the issuer.

Put Provisions in Bonds Allow