The provision that provides bondholders the right to sell the bond back to the issuer at a predetermined price prior to the bond's maturity date is referred to as:
A) a put provision.
B) a make-whole call provision.
C) an original issue discount provision.

Question

Quizplus · Accepted Answer

This provision is commonly known as a put provision, which gives bondholders the right to sell the bond back to the issuer at a predetermined price prior to the bond's maturity date.

The Provision That Provides Bondholders the Right to Sell the Bond