A Put Feature on a Bond Is Attractive to Investors

question 13

True/False

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

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Definitions:

Principle of Utility

A principle in ethics and moral philosophy that actions are right if they are useful or for the benefit of a majority.

Utilitarians

Proponents of the ethical theory of utilitarianism, which proposes that the best action is the one that maximizes utility, typically defined as maximizing happiness and reducing suffering.

Rightness

The quality or state of being morally correct or justified.

Capabilities Approach

A normative framework that evaluates social arrangements and public policies based on their ability to enable individuals to achieve functionings that they have reason to value.