Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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8. What is a put provision and why would a put provision be included in the terms of a bond.

Expert Solution
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Step 1: Put provision definition

A put provision is a provision that allows a bond holder to resell the bonds back to the issuer before the bond matures. Basically, this provision allows for premature redemption of bond principle amount be its maturity.

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