It is important to read through all of the highlighted terms in this section about bond characterstics. I am going to focus especially on three:

1. Callable Bonds
2. Convertible Bonds
3. Putable Bonds

Match each description below to the bond it best describes

- A. B. C.	These are bonds that can be converted in shares of stock and are common in growth firms where there is a high likelyhood of the stock increasing in value
- A. B. C.	The option to convert is up to the investor- this gives investors additional rights and means that yields for these bonds are lower, all else equal
- A. B. C.	This bond option is exercised when stock prices rise
- A. B. C.	This bond feature allows investors the option to require the firm to pay in advance (the investor can "put" the bond back on the firm)
- A. B. C.	The option to be paid early is up to the investor- this gives investors additional rights and means that yields for these bonds are lower, all else equal
- A. B. C.	This option will be exercised when interest rates rise and invesotrs would rather seek better available bonds
- A. B. C.	In this bond option, firms can choose to pay their debt off early. This comes at an additional price, called the call price
- A. B. C.	The option to call the bonds back is up to the firm- this gives firms additional flexiblity and is extra risk for the investor, which means that yields for these bonds are higher, all else equal
- A. B. C.	This option is exercised when interest rates are declining making debt refinancing more attractive

A.	Putable Bonds
B.	Callable Bond
C.	Convertiable Bonds