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Puttable bond (put bond, putable or retractable bond) is a bond with an embedded put option. The holder of the puttable bond has the right, but not the obligation, to demand early repayment of the principal. The put option is exercisable on one or more specified dates. [1]
Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. These are called callable bonds. [10] A less common feature is an embedded put option that allows investors to put the bond back to the issuer before its maturity date. These are called putable bonds.
Securities other than bonds that may have embedded options include senior equity, convertible preferred stock and exchangeable preferred stock. See Convertible security. [citation needed] The valuation of these securities couples bond-or equity-valuation, as appropriate, with option pricing. For bonds here, there are two main approaches, as ...
The bond market is stealing the spotlight as we turn the corner into a new year that rang in yields not seen since 2007. In October the yield only briefly tapped 5%. In October the yield only ...
It's a new year, which means anything can happen, including with people's finances. Consider This: I'm a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances in 2025 Find Out: Why...
Callable and putable bonds can be valued using the lattice-based approach, as above, but additionally allowing that the effect of the embedded option is incorporated at each node in the tree, impacting the bond price and / or the option price as specified. These bonds are also sometimes valued using Black–Scholes.
Bond investors are carefully watching the potential for the Trump tariffs to stoke inflation, an effect that could send bond prices plummeting, depending on its severity. How the Trump tariffs ...
In some cases, inmates are arrested for crimes that would not result in prison time if they were convicted, and they cannot afford to pay small bonds. If a bond amount strikes you as questionable (too high or too low for the charge), consider following up to see if it was set according to a broader bond schedule — which indiscriminately sets ...