A financial instrument (a warrant, specifically a debt warrant) that gives its holder the right, but not the obligation, to buy or sell a specific bond at a specific price either on a particular date or within a specified period of time. It is issued either by the entity issuing the bond or another issuer. A contingent takedown option can be exercised into a deal sweetener (kicker), represented by the underlying fixed-income security (the bond). In other words, the holder of the option, usually the buyer of a bond or note, can exercise the warrant to acquire another fixed-income security with a similar coupon.

It is also known as a bond warrant.