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A call provision gives bondholders the right to demand, or call for. repayment of a bond. Typically, calls are exercised after interest rates rise because

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A call provision gives bondholders the right to demand, or "call for." repayment of a bond. Typically, calls are exercised after interest rates rise because bondholder can reinvest the principal elsewhere at higher rates. O True False Which of the following events would make it more likely that outstanding callable bonds would actually be called? Inflation increases significantly O Market interest rates rise sharply. The company's financial situation deteriorates significantly The company's bonds are downgraded. Market interest rates cline sharply

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