Progressive Corporation issued callable bonds.The bonds are most likely to be called if

Name: Progressive Corporation issued callable bonds.The bonds are most likely to be called if
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Question

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When interest rates decrease, it becomes advantageous for the issuer of the bond to call back the bonds as they can issue new bonds at a lower interest rate which would reduce their interest expense. Therefore, callable bonds are most likely to be called when interest rates decrease.

Progressive Corporation Issued Callable Bonds