A bond feature that allows the bondholder to sell the debt back to the issuing firm for a pre-specified price is called a

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A putability feature allows the bondholder to sell the debt back to the issuing firm for a pre-specified price, so it is the correct choice. A sinking fund is a fund established by the issuer to systematically retire a portion of the outstanding bonds, but it does not allow bondholders to sell the debt back. A callability feature allows the issuer to redeem the bond before its maturity date, but not the bondholder. A warrant is a security that gives the holder the right to buy the underlying stock at a fixed price. The putability feature allows the bondholder to sell the debt back to the issuing firm for a pre-specified price. The sinking fund is a provision that requires the issuer to retire a portion of the bond issue each year. Callability feature allows the issuer to redeem the bonds before the maturity date. A warrant is an option that gives the holder the right to buy additional shares of stock at a specified price.

A Bond Feature That Allows the Bondholder to Sell the Debt