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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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