A bond is most likely to be called when the market rate is lower than the coupon rate.

Name: A bond is most likely to be called when the market rate is lower than the coupon rate.
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When the market interest rates fall below the coupon rate of the bond, issuers are more likely to call (or redeem) the bond before its maturity to refinance the debt at a lower interest rate, thus saving on interest expenses.

A Bond Is Most Likely to Be Called When the Market