The process of retiring high-coupon debt and issuing new bonds at a lower coupon to reduce interest payments is called

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The process described is called refunding, which involves retiring existing debt with high coupon rates and issuing new bonds at a lower coupon rate to reduce interest payments. Option A, deferral, refers to the postponement of payment obligations. Option B, reissue, is not an accurate term for the process described. Option C, repurchase, involves buying back outstanding securities, which is not the same as refunding.

The Process of Retiring High-Coupon Debt and Issuing New Bonds