A put provision allows the bondholder to redeem a bond at
its face value before it matures.
Investors may do this when
interest rates are rising and they can take advantage of higher
rates elsewhere. They may not "put" their bonds whenever they
choose, however. The issuer assigns dates for this provision, after
which the bondholders can redeem the bonds.
Compared to callable bonds, "put bonds" are quite rare.
There are also bonds that can be converted into stock. Read
about them next.
