When a bondholder is granted the right to force the issuer to repay the bond prior to maturity, the bond:

A) Is an income bond.
B) Is a convertible bond.
C) Contains a call provision.
D) Contains a put provision.
E) Contains a zero-out provision.

Put Provision

A clause in a bond or other security that allows the holder to force the issuer to buy back the security before its maturity date.

Call Provision

A clause in a bond contract allowing the issuer to repay the bond before its maturity date under specific conditions.

Convertible Bond

A type of bond that the holder can convert into a specified number of shares of the issuing company, usually at predetermined times during its life.