question archive Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? Answer a
Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? Answer a
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Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds?
Answer
a. The company’s bonds are downgraded.
b. Market interest rates rise sharply.
c. Market interest rates decline sharply.
d. The company's financial situation deteriorates significantly.
e. Inflation increases significantly.
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Answer:
-C When market rates decline it can call and finance at a lower interest cost
