Refunding a bond occurs when the company sells more bonds of the same series with maturity and a coupon equal to the bonds sold earlier.
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Q25: The prices of zero-coupon bonds tend to
Q26: If an investor expect interest rates to
Q27: The costs of bond refunding are the
Q28: The coupon rate is the actual interest
Q29: The weighted average cost of capital is
Q31: The coupon rate is the actual interest
Q32: When interest rates rise, bond refunding becomes
Q33: As interest rates decline, bond refunding should
Q34: Zero-coupon bonds are more risky then other
Q35: The costs of bond refunding are the
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