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Five years ago Brookfield Industries issued 30 year bonds with a 4% coupon rate callable at par after 5 years. Inflation has increased and the

Five years ago Brookfield Industries issued 30 year bonds with a 4% coupon rate callable at par after 5 years. Inflation has increased and the yield on bonds similar to Brookfield's is now 6%. Given these facts,

A.

Brookfield is almost certain to call the bonds.

B.

the price of the bonds will remain close to par because of their call value.

C.

the yield to call on the Brookfield bonds is now 6%.

D.

Brookfield is not likely to call the bonds any time soon.

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