Callable and Putable Bonds Add Options to an Ordinary Bond

question 44

Essay

Callable and putable bonds add options to an ordinary bond.These options may be exercised at the discretion of the bondholder in one type,or the bond issuer in the other.Describe callable and putable bonds.In your description,be sure to include which party has the option to exercise,and the impact of the option on the price of the bond.

---

Definitions:

Organizational Citizenship Behavior

Voluntary and discretionary behaviors not directly or explicitly recognized by the formal reward system that promote the effective functioning of the organization.

Amotivation

A state of no motivation.

Face-To-Face Interactions

Direct, in-person communication between individuals, offering immediate feedback and nonverbal cues.

Flow

A mental state of complete immersion and involvement in an activity, where time seems to disappear and performance is heightened.