A provision, attached to a puttable bond, which allows the bondholder to put (give back) the bond to the issuer for a specified cash price on predetermined dates according to the put schedule. This provision provides the bondholder with downside protection, and as such add extra value to the bond (compared with similar nonputtable bonds). From the perspective of the bondholder, a put provision is equivalent to a put option whose seller and buyer are the seller and buyer, respectively.
January 5, 2025
