When Would It Make Sense for a Firm to Call

question 29

Multiple Choice

When would it make sense for a firm to call a bond issue and refinance?

• A)When the market price of the bond exceeds the call price, and market interest rates are less than the bond's coupon rate
• B)When the market price of the bond exceeds the call price, and market interest rates are greater than the bond's coupon rate
• C)When the market price of the bond is less than the call price, and market interest rates are greater than the bond's coupon rate
• D)when the market price of the bond is less than the call price, and market interest rates are less than the bond's coupon rate

---

Definitions:

Muscle Groups

Collections of muscles in the body that work together to perform specific movements or functions.

Injury

Physical harm or damage to someone's body caused by an accident or violence.

Lofstrand/Canadian

Refers to a specific type of crutches with forearm support, commonly used in Canada.

Forearm Crutch

A type of support device used to assist with walking, which is held and supported by the forearm.