A callable corporate bond may be retired if:

Name: A callable corporate bond may be retired if:
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Question

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A callable bond gives the issuer the option to retire the bond early if interest rates decline, which can save them money by issuing new bonds at a lower interest rate. Therefore, if interest rates rise sharply, the issuer will not want to retire the callable bond and will keep paying the higher interest rate, making option A the correct choice.

A Callable Corporate Bond May Be Retired If