Premium Put Convertible(redirected from Premium Put Convertibles)
Premium Put Convertible
A bond with two unusual features. First, it has a convertible option and may be exchanged for common stock in the underlying company. Secondly, it has a feature whereby the bondholder may redeem the bond from the issuer for a certain price at any time before maturity. In addition to these, it contains regular features of a bond such as regular coupon payments. The premium put option gives the bondholder a great deal of flexibility when the value of the bond changes.
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