Which of the Following Factors Would Increase the Likelihood That

question 46

Multiple Choice

Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time?

• A) The yield to maturity on the company's outstanding bonds increases due to a weakening of the firm's financial situation.
• B) A provision in the bond indenture lowers the call price on specific dates, and yesterday was one of those dates.
• C) The flotation costs associated with issuing new bonds rise.
• D) The firm's CFO believes that interest rates are likely to decline in the future.

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Definitions:

Productive Results

Outcomes or deliverables that are effectively and efficiently achieved, contributing to the goals of an organization or individual.

Job

A set of specified work and task activities that engage an individual in an organization.

Positive Affect

The extent to which an individual experiences positive moods such as joy, interest, and alertness.

Value

The importance, worth, or usefulness of something, often considered in terms of financial, social, or personal significance.