When would it make sense for a firm to call a bond issue?
A) when the market price of the bond exceeds the call price, and market interest rates are greater than the bond's coupon rate
B) when the market price of the bond exceeds the call price, and market interest rates are less than the bond's coupon rate
C) when the market price of the bond is less than the call price, and market interest rates are greater than the bond's coupon rate
D) when the market price of the bond is less than the call price, and market interest rates are less than the bond's coupon rate
Correct Answer:
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