The process of retiring high-coupon debt and issuing new bonds at a lower coupon to reduce interest payments is called

A) deferral.
B) reissue.
C) repurchase.
D) refunding.
E) None of the options are correct.

Refunding

In finance, refunding refers to the process where an entity replaces an existing debt obligation with a new debt obligation under different terms, typically to take advantage of more favorable interest rates.

High-Coupon Debt

Bonds that offer higher interest payments due to having a high coupon rate, typically reflecting higher risk or longer maturity.

Interest Payments

Regular payments made to bondholders, representing the interest earned on the bond's face value for a certain period.