In considering the bond refunding analysis, which of the following statements is/are correct?
I. The marginal rate of return is used as the discount rate
II. Bond refunding is most prevalent during a period of high inflation.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

The marginal rate of return is not typically used as the discount rate in bond refunding analysis, and bond refunding is more common during periods of low interest rates, not high inflation.

In Considering the Bond Refunding Analysis, Which of the Following