Which of the Following Events Would Make It More Likely

question 84

Multiple Choice

Which of the following events would make it more likely that a company would call its outstanding callable bonds?

• 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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Definitions:

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives.

Cloture

A procedural action in the Senate for ending a filibuster or debate, requiring a supermajority vote to proceed to a final vote.

Senate

One of the two chambers of the legislature in a bicameral system, often seen in the United States, responsible for making laws.

Debate

A structured discussion or argument, typically in a public setting, where opposing viewpoints are presented on a specific topic.