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

Question

Quizplus · Accepted Answer

An increase in interest rates would make it more costly for a company to issue new bonds, which in turn makes it less likely for the company to call its outstanding callable bonds. This is because the company might not be able to find cheaper sources of funding in the market to replace the called bonds.

Which of the Following Events Would Make It Less Likely