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Regarding bonds with put options, all of the following statements are true EXCEPT: A exercise of the put is at the option of the bondholder
Regarding bonds with put options, all of the following statements are true EXCEPT:
exercise of the put is at the option of the bondholder
once the option is exercisable, the bond's price will not fall below the option price if interest rates rise
yields on bonds with put options are higher than similar bonds without this feature
the put option represents a floor on the market price of the bond
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