Since a putable bond gives its holder the right to put the bond ...

[burchfield96]

Since a putable bond gives its holder the right to put the bond at specified times or because of specified actions by the issuing firm, the bond's yield would be lower than that of an otherwise equivalent non-putable bond.
 
  Indicate whether the statement is true or false

Question 2

The higher, the value of ________ ratio, the better able a firm is to fulfill its interest obligations.
 
  A) dividend payout
  B) average collection period
  C) times interest earned
  D) average payment period

[Sammyo]

Answer to Question 1

TRUE

Answer to Question 2

C