Bond Refunding Typically Occurs When

question 62

Multiple Choice

Bond refunding typically occurs when

• A)interest rates in the market are sufficiently less than the coupon rate on the old bond.
• B)interest rates in the market have risen over the coupon rates on the old bond.
• C)the price of the old bond is less than par.
• D)a related sinking fund has accumulated enough money to retire the bond issue.

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