A bond with a «Put option» works in exactly the opposite manner, wherein the investor can sell the bond to
the issuer at a specified price before its maturity if the interest rates go up after the issuance and the investor has other, higher - yielding investment options.
Warrant: A security that gives the holder the right to buy the common stock of
the issuer at a specified price for a period of time, usually years.
Not exact matches
Call risk Some corporate, municipal and agency bonds have a «call provision» entitling their
issuers to redeem them
at a
specified price on a date prior to maturity.
Bonds that are redeemable by the
issuer prior to the maturity date,
at a
specified price at or above par.
A callable municipal, corporate, federal agency or government security gives the
issuer of the bond the right to redeem it
at predetermined
prices at specified times prior to maturity.