A put feature on a bond is attractive to investors who believe interest rates will drop before the bond matures.

Name: A put feature on a bond is attractive to investors who believe interest rates will drop before the bond matures.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

A put feature is attractive to investors who believe interest rates will rise, as it allows them to sell the bond back to the issuer before maturity at a predetermined price, potentially to reinvest in higher-yielding securities.

A Put Feature on a Bond Is Attractive to Investors