Answer: false
Explanation:
Annuity due is an annuity whereby the payment is normally due at the beginning of every period which can be annually, semi annually, monthly, or quarterly. Examples of payments with annuity due include rents and, leases.
In ordinary annuity, the main difference is that the payments have to be made at the end of every period.
It should be noted that the present value of an annuity due is typically worth more when it is compared to the present value of ordinary annuity.
A puttable bond gives the bondholder the right to cash in the bond before maturity at a specific price after a specific date.
What is meant by puttable bonds?
A puttable bond, also known as a put bond or retractable bond, is a type of bond that gives the bondholder (investor) the right but not the responsibility to demand that the issuer repay the bond before its maturity date. This bond has a put option built into it, to put it another way.
Who benefits from a puttable bond?
Bonds with put options offer excellent support for the bondholder's reinvestment risk. They have the option to repurchase the bond at any time, using the proceeds to buy high-yield bonds. However, businesses can be financed by firms without having to pay higher interest rates.
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In game theory, economic participants are referred to as "players". Game theory consists in the use of mathematical models in order to predict the behaviour of rational decision-makers in cooperative and competitive environments.
They are fast easy and cheaper, but offer less control and customisability.
