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Consider a bond that gives the bondholder the option to sell the bond to the issuer at a pre-specified price and time. This options is
Consider a bond that gives the bondholder the option to sell the bond to the issuer at a pre-specified price and time. This options is likely to be used (exercised) in which of the following cases?
when the stock price decreases | ||
when interest rates decrease | ||
when interest rates increase | ||
when the stock price increases | ||
when callable bonds are sold |
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