Asked by jessika stanley on May 17, 2024
Verified
If a company issued a callable bond at 6% interest, would it be likely to call the bond if the current rate of interest rose to 7%?
Callable Bond
A type of bond that gives the issuer the right to pay off the debt before its maturity date under certain conditions, often at a defined call price.
Interest Rate
The percentage of a sum of money charged for its use, typically expressed as an annual percentage.
- Grasp when and why a company might call callable bonds.
Verified Answer
KB
Learning Objectives
- Grasp when and why a company might call callable bonds.
Related questions
A Company Issued $1,000,000 of 30-Year, 8% Callable Bonds on ...
Investors Are Given the Option Accepting Calls on Bonds with ...
Only Callable Bonds Can Be Purchased by the Issuing Corporation ...
Convertible Bonds Can Be Exchange for a Fixed Number of ...
________ Bonds Have an Option Exercisable by the Issuer to ...