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wrote...
Posts: 223
A month ago
When would it make sense for a firm to call a bond issue and refinance?

▸ when the market price of the bond is less than the call price, and market interest rates are greater than the bond's coupon rate

▸ when the market price of the bond exceeds the call price, and market interest rates are less than the bond's coupon rate

▸ when the market price of the bond is less than the call price, and market interest rates are less than the bond's coupon rate

▸ when the market price of the bond exceeds the call price, and market interest rates are greater than the bond's coupon rate
Textbook 

Fundamentals of Corporate Finance


Edition: 2nd
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wrote...
Posts: 226
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A month ago
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when the market price of the bond exceeds the call price, and market interest rates are less than the bond's coupon rate
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wrote...
A month ago
Exactly what I needed for my project, TYSM
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