Put Provision

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Put provision

Gives the holder of a floating-rate bond the right to redeem the note at par on the coupon payment date.

Put Provision

A provision in some floating-rate bonds allowing a bondholder to redeem the bond at par on the date coupons are paid. This allows the bondholder to reinvest at a more favorable interest rate when the coupon rate changes on the floating-rate bond.

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