Putable Bonds Give the Bondholders an Option to Sell the Bond

question 117

True/False

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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Definitions:

Immigrants

Individuals who leave their country of origin to live permanently in another country.

Muslim Fundamentalists

Individuals or groups advocating for a return to the original principles of Islam, sometimes through strict adherence to Sharia law.

Russian Army

The land-based military force of the Russian Federation, successor of the Soviet Army, and one of the leading military forces globally.

Xenophobia

An irrational fear or hatred of foreigners or anything perceived as foreign or strange.