A corporation often issues callable bonds to protect itself against significant declines in future interest rates.

Name: A corporation often issues callable bonds to protect itself against significant declines in future interest rates.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

Callable bonds give the corporation the option to redeem the bonds before maturity if interest rates decline significantly, which saves them money on interest payments. This protects them against losses from keeping higher interest rate bonds in the market.

A Corporation Often Issues Callable Bonds to Protect Itself Against