Bonds That Can Be Redeemed at Par at the Option

Multiple Choice

Bonds that can be redeemed at par at the option of their holders either on a specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt are called

A) putable bonds.
B) floating-rate bonds.
C) junk bonds.
D) zero coupon bonds.