Asked by
Carlton LaFrance
on Nov 18, 2024
Verified
A corporation often issues callable bonds to protect itself against significant declines in future interest rates.
Callable Bonds
Bonds that can be redeemed by the issuer prior to their maturity date, usually at a predetermined price.
Future Interest Rates
An indication of what the cost of borrowing money or the rate of return on investments will be at a future date.
- Familiarize oneself with the notions and economic effects of callable and noncallable bonds.
Verified Answer
SA
Learning Objectives
- Familiarize oneself with the notions and economic effects of callable and noncallable bonds.