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.

Question

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.

Tarteel Alrayahneh · Accepted Answer

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.

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.

Definitions

Learning Objectives

Learning Objectives

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