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Author Question: Which event would make it more likely that a company would choose to call its outstanding callable bonds? (Read 92 times)

Emmejo01

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on: Aug 7, 2023

Question 1

Which bond would have the greatest percentage decrease in value if all interest ratesincreaseby 1%?

◦

30-year, 14% coupon bond 


◦

30-year, 8% coupon bond 


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30-year, zero coupon bond


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5-year, zero coupon bond



Question 2

Which event would make it more likely that a company would choose to call its outstanding callable bonds?

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The company’scash flows are worse now.


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The company’s net income plummeted.


◦

Market interest rates have decreased dramatically.


◦

The market experiences higher inflation.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Emmejo01 on Aug 7, 2023

fowlerhop@rocketmail.com

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Emmejo01

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Reply 2 on: Aug 7, 2023
Excellent

ricroger

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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