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Issuer's Option Bond
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A debt instrument which, in return for a higher yield than the issuer would otherwise have to pay, gives the issuer an unusual option. The option may range from a put requiring the investor to accept the issuer's common stock for the bond's principal at maturity to the right to retire the issue at maturity, partly with cash and partly with a new issue of bonds. In the latter case, the issuer's option may be an option to extend maturity. See also Mandatory Convertible.
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