Juan recently invested in 15-year Bellandro Bay Brewery bonds paying 6% interest annually, with a maturity date of 2030. The bonds are callable in 2025. If interest rates go down to 4.5% in the year 2025, the brewery is likely to:

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If interest rates go down to 4.5% in 2025, the brewery is likely to exercise the call option and refinance the bonds at the lower interest rate, saving them money on interest payments. This means that Juan would have to give up his bonds, but he would receive the face value of the bonds plus any accrued interest.

Juan Recently Invested in 15-Year Bellandro Bay Brewery Bonds Paying