A company should retire bonds early only if
A) interest rates have risen significantly.
B) it has sufficient cash.
C) shareholders agree to the retirement.
D) the bonds were initially sold at a discount.

Question

Quizplus · Accepted Answer

Retiring bonds early often requires a significant amount of cash to buy back the bonds before their maturity date. Therefore, a company should only consider this option if it has sufficient cash resources to do so without negatively impacting its operations or financial stability.

A Company Should Retire Bonds Early Only If