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Which of the Following Events Would Make It More Likely

Question 2

Multiple Choice

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


A) A reduction in market interest rates.
B) The company's bonds are downgraded.
C) An increase in the call premium.
D) Answers a and b are both correct.
E) Answers a,b,and c are all correct.

Correct Answer:

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