A bondholder should put a puttable bond


1. A bondholder should put a puttable bond when:

A. the bond's yield is above its coupon payment

B. the bond's yield is below its coupon payment

C. the bond's price is below its put price

D. the bond's price is above its put price

E. none of the above

2. Henry Fuller purchases a used automobile for $4500. He wishes to limit his monthly payment to $100 for a period of two years. What downpayment must he make to complete the purchase if the interest rate is 15% on the loan?

A. $2,437.60 downpayment

B. $1,850.00 downpayment

C. $2,988.57 downpayment

D. $3,111.11 downpayment

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Financial Management: A bondholder should put a puttable bond
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