As a defensive maneuver,a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover.These bonds are an example of:

Question

Quizplus · Accepted Answer

The description given in the question matches the characteristics of a poison put. It is a defense mechanism that allows bondholders to sell their bonds back to the company at a higher price if an unfriendly takeover occurs, causing financial harm to the company that attempted the takeover. This makes the target company less attractive to potential acquirers and serves as a deterrent to hostile takeover attempts.

As a Defensive Maneuver,a Firm Issues Deep-Discount Bonds That Are