Which of the following events would make it more likely that a company would call its outstanding callable bonds? State your reason for the answer.    The company’s bonds are downgraded. Market interest rates rise sharply. The company's financial situation deteriorates significantly. Inflation increases significantly. Market interest rates decline sharply

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
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Which of the following events would make it more likely that a company would call its outstanding callable bonds? State your reason for the answer. 

 

  1. The company’s bonds are downgraded.
  2. Market interest rates rise sharply.
  3. The company's financial situation deteriorates significantly.
  4. Inflation increases significantly.
  5. Market interest rates decline sharply
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