Death Put

0.03 sec.

Death Put

A provision in some indentures giving the survivors of a bondholder the right, but not the obligation, to sell a bond back to its issuer at the bondholder's death or legal incapacitation. The bond is sold at is face value and the proceeds are deposited into the estate of the bondholder. If interest rates are declining, the survivors may be able to make a great deal of profit.

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