Putable bonds give the bondholders an option to sell the bond at a price higher than par value by the amount of one year interest payment when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt.

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Putable bonds give the bondholders the option to sell the bond back to the issuer at a predetermined price before maturity, but this feature is not specifically tied to actions such as acquisitions or issuing additional debt, nor is it typically described as being at a price higher than par value by the amount of one year's interest payment.

Putable Bonds Give the Bondholders an Option to Sell the Bond