%0 Journal Article %A Andrew J. Kalotay %A Leslie A . Abreo %T Putable/Callable/Reset Bonds %B Intermarket Arbitrage with Unpleasant Side Effects %D 1999 %R 10.3905/jod.1999.319132 %J The Journal of Derivatives %P 88-93 %V 6 %N 4 %X A callable bond will be paid off before maturity if the issuer finds the interest rate environment favors that strategy. But a putable bond may experience the same fate, at the option of the bondholder. Combining both call and put features in a single bond creates enough contingencies that quite different-seeming instruments may actually be essentially the same. This article examines such a structure and shows both how it behaves and why the ability to take it apart and effectively sell off some of the components as stand-alone options can make it particularly attractive to an issuer. %U https://jod.pm-research.com/content/iijderiv/6/4/88.full.pdf