单选题

Which of these is the best example of an embedded option granted to bondholders?

A、 A prepayment option
B、 A floor on a floating rate security
C、 An accelerated sinking fund provision

【正确答案】 B

【答案解析】

B is correct because the floor benefits the bondholder by keeping the coupon from falling below a certain threshold if market rates decline to very low levels.