If a company anticipates a substantive decline in interest rates during the term of the bond,which feature is likely to be included in its bond offering?

Question

Quizplus · Accepted Answer

Callable bonds give the issuer the right to redeem the bonds before their maturity date, which is advantageous if interest rates decline, allowing the issuer to refinance the debt at a lower rate.

If a Company Anticipates a Substantive Decline in Interest Rates