Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds?

Question

Quizplus · Accepted Answer

When market interest rates decline sharply, the cost of borrowing in the market becomes cheaper. A company with outstanding callable bonds might choose to call (or redeem) these bonds to refinance the debt at the lower current interest rates, thereby reducing its interest expenses.

Which of the Following Events Would Make It More Likely