Which of the following statements regarding puttable bonds is TRUE?
A) The issuer may require that the put feature be exercised if interest rates drop significantly.
B) Their yields are usually lower than those of nonputtable bonds.
C) The put feature is likely to be exercised when interest rates are falling.
D) The bondholder can expect to receive a premium over par if he chooses to put the bonds.
Answer: B) Their yields are usually lower than those of nonputtable bonds.