A Firm Which Issues Put Bonds Is Agreeing To

Multiple Choice

A firm which issues put bonds is agreeing to:

A) Sell the bonds at a specific price for a specific period of time.
B) Borrow money under the condition that it can be repaid at a set price for a set period of time.
C) Pay a set amount of money for a set period of time in exchange for converting the bonds into stock.
D) Borrow money now and give the holder the option to lend more money at a set rate for a set period of time.
E) Issue bonds that can be converted into equity at the option of the bondholder.