A Put Provision in a Bond Indenture Allows

Multiple Choice

A put provision in a bond indenture allows:

A) A bond issuer to recall the bond after a specified period of time at a price that exceeds the face amount.
B) A bondholder to force the issuer to increase the coupon rate if inflation increases by more than a specified amount.
C) The bondholder to force the issuer to buy back the bond at a specified price prior to maturity.
D) The issuer to convert a coupon bond into a zero-coupon bond at their discretion.
E) The issuer to suspend interest payments for any year in which the interest expense exceeds the net income of the firm.