Callable bond and a putable bond

What are a callable bond and a putable bond?  How can each of these bonds affect their market interest rates?

E

Expert

Verified

a) A callable bond can be retired early at the issuer’s discretion.
b) A putable can be retired early at the investor’s discretion.
Effects: A call provision increases the market interest rate and a put provision decreases it.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.