Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds?
A) A reduction in market interest rates.
B) The company's bonds are downgraded.
C) An increase in the call premium.
D) Answers a and b are correct.
E) Answers a, b, and c are correct.

Question

Quizplus · Accepted Answer

A reduction in market interest rates would make it more likely for a company to call its outstanding callable bonds to refinance at a lower interest rate.

Which of the Following Events Would Make It More Likely