Asked by matheus castro on Jun 04, 2024
Verified
Mike purchased an ABC Co. bond that gives him the right to sell the bond to ABC Co. at a stated price. Mike bought a ______ bond.
A) Callable.
B) Discount.
C) Zero-coupon.
D) Put.
E) Floating-rate.
Put Bond
A type of bond that allows the holder to force the issuer to buy back the bond at specified times before maturity.
- Understand the particulars and purposes behind diverse bond provisions like put provisions, call provisions, and protective covenants.
Verified Answer
TA
Tarteel AlrayahnehJun 09, 2024
Final Answer :
D
Explanation :
A put bond gives the bondholder the right to force the issuer to buy back the bond at a stated price before maturity. This is what is described in the scenario.
Learning Objectives
- Understand the particulars and purposes behind diverse bond provisions like put provisions, call provisions, and protective covenants.