A convertible bond that is embedded with a put provision. In other words, it allows the bondholder to put or return the bond to the issuer at a preset price and time. Typically, put dates range from one to several years, but always expire before the bond’s final maturity. Put prices vary from the issue price to a premium over issue price. The right to put has the effect of shortening the maturity of the bond and as such it effectively raises its investment value.

This structure is commonly used in zero-coupon bonds.