A put bond permits the investor to sell the bond back to the issuer (i.e., redeem the bond)at par prior to maturity.

Name: A put bond permits the investor to sell the bond back to the issuer (i.e., redeem the bond)at par prior to maturity.
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Question

Quizplus · Accepted Answer

A put bond indeed allows the investor the option to sell the bond back to the issuer at par value before the bond's maturity date, providing the bondholder with protection against interest rate increases or declines in the issuer's credit quality.

A Put Bond Permits the Investor to Sell the Bond