The primary reason a company will retire bonds early is:

Question

Quizplus · Accepted Answer

The primary reason for a company to retire bonds early is to relieve the pressure of making high interest payments, since they may be able to borrow at a lower interest rate. By retiring the higher interest bonds early, the company can potentially save money in the long term. Helping the bondholders or increasing the amount of debt on the books are not primary reasons for retiring bonds early.

The Primary Reason a Company Will Retire Bonds Early Is