SIE practice questionhardPuttable bonds
Compared to non-putable bonds, puttable bonds generally:
- AAre issued only by municipalities
- BHave longer durations
- COffer lower yields to investors✓ Correct answer
- DAre always convertible into stock
Explanation
Why C — Offer lower yields to investors
Puttable bonds offer investors a benefit, so issuers can offer lower yields. They are not always municipal or convertible, and duration is not necessarily longer.
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