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Consider a bond that gives the issuer the option to pay the bond off early at a pre-specified price and time. This option is likely

Consider a bond that gives the issuer the option to pay the bond off early at a pre-specified price and time. This option is likely to be used (exercised) in which of the following cases?

A) When the stock price decreases

B) when interest rates increase

C) when callable bonds are sold

D) when the stock price increases

E) when interest rate decreases

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