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