CFA Practice Question

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CFA Practice Question

_____ gives bondholders the right to sell the bonds back to the company if the management control changes on account of a takeover.
A. Poison put.
B. Tender offer.
C. Golden parachute.
Explanation: It is a provision of a bond or note which makes the instrument putable to the issuer following a change of control or a restructuring which reduces the credit quality of the issue. Also called Event Risk Covenant.

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