Which of the following is true about a municipal bond with a put option? (A) An investor will exercise the option to put the bond if yields rise significantly. (B) An investor must have the issuer's permission to put the bond. (C) The market price of bonds is never affected by a put option feature. (D) Yields are usually higher for a new issue bond with a put option than for a new issue bond without a put option.
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Home » Chemistry » Which of the following is true about a municipal bond with a put option? (A) An investor will exercise the option to put the bond if yields rise significantly. (B) An investor must have the issuer's permission to put the bond.