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:

Schizophrenic Episode

A period of intense symptoms of schizophrenia, such as hallucinations, delusions, disorganized speech or behavior.

Peer Assistance Program

A support system where individuals offer mutual help and guidance to each other, often in professional contexts or around specific issues.

Controlled Substances

Drugs or chemicals whose manufacture, possession, and use are regulated by a government, such as prescription medications, illicit drugs, and certain chemicals.

Substance Abuse And Mental Health Services Administration

A U.S. government agency tasked with improving the quality and availability of substance abuse prevention, addiction treatment, and mental health services.