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) the bondholder to force the issuer to buy back the bond at a specified price prior to maturity.
C) a bondholder to force the issuer to increase the coupon rate if inflation increases by more than a specified amount.
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.