Corporations are likely to exercise call provisions whenever interest rates fall significantly below a bond's coupon rate.

Name: Corporations are likely to exercise call provisions whenever interest rates fall significantly below a bond's coupon rate.
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When interest rates fall significantly below a bond's coupon rate, the corporation can issue new bonds at a lower interest rate, so they will likely call the old bonds with higher interest rates to save money.

Corporations Are Likely to Exercise Call Provisions Whenever Interest Rates