XYZ company issued callable bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?
A) XYZ company will lower the par value of their bonds.
B) XYZ company will raise the coupon rate of their bonds.
C) XYZ company will call their bonds in.
D) None of the above is correct.
Correct Answer:
Verified
Q2: An unsecured long-term bond is known as
Q3: Which of the following determines what the
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Q6: Any bond that is backed by the
Q7: Why might you consider investing in bonds?
A)Bonds
Q8: The _ is the face value of
Q9: The par value of the bond is
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Q11: The issuer of the bond is effectively
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