XYZ Company Issued Callable Bonds Three Years Ago with a 7

question 90

Multiple Choice

XYZ company issued callable bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?

• A)XYZ company will lower the par value of their bonds.
• B)XYZ company will raise the coupon rate of their bonds.
• C)XYZ company will call their bonds in.
• D)None of the above is correct.

---

Definitions:

Watchdog Organizations

Groups that monitor and report on activities within specific industries, government entities, or corporations to ensure accountability and integrity.

Principal Mechanisms

Fundamental processes or systems that drive actions or outcomes within a particular context or field.

Financial Ratio

A measurement that evaluates the performance, liquidity, or financial health of a company by comparing two pieces of financial data.

Performance Assessment

The process of evaluating the efficiency, effectiveness, and quality of an individual's or organization's work.