Since a putable bond gives its holder the right to "put the bond" at specified times or because of specified actions by the issuing firm, the bond's yield would be lower than that of an otherwise equivalent non-putable bond.

Question

Quizplus · Accepted Answer

The fact that the bond is putable provides more flexibility and protection to the bondholder, which leads to a lower yield. Therefore, a putable bond typically has a lower yield than a non-putable bond.

Since a Putable Bond Gives Its Holder the Right to "Put