Matthew recently invested in 15-year Bathtub Brewing Company bonds paying 8% interest annually, with a maturity date of 2035. The bonds are callable in 2030. If interest rates go down to 5.5% in the year 2030, the brewery is likely to
A) not exercise the call.
B) exercise the call.
C) give bondholders a choice of whether they want to turn the bonds back to the brewery.
D) decrease the interest rate that they are willing to pay the holder.
Correct Answer:
Verified
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