|
|
|
|
|
|
|
|
§ |
The
put bond gives the investor the option
|
|
|
|
to
extend or retire the bond at the call date.
|
|
|
§ |
If
the bonds coupon rate exceeds market
|
|
|
|
yields,
the bondholder will choose to extend
|
|
§ |
If
the bonds coupon rate is too low, it will
|
|
|
|
be
optimal to retire the bond and reinvest
|
|
|
|
the
proceeds at current yields.
|
|