Fixed-Income Types: Putable Bonds, Convertible Bonds, and Warrants

An investor who expects interest rates to rise beyond the levels that are currently reflected in market yields will _mostly likely_ purchase:
That's right! As interest rates rise, bond prices fall. However, embedded put options give investors the right to sell their bonds back to the issuer at a predetermined price (typically par value). These funds can then be reinvested in a higher interest rate environment.
Incorrect. Callable bonds do not offer investors any protection against rising interest rates.
Incorrect. Conventional bonds will decline in value as interest rates rise.
putable bonds.
callable bonds.
conventional bonds.

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