respond to: Hi class, If I were an employee in the finance department of a medium sized corporation and The Treasurer asked me to do some research on Callable Bonds and what my recommendation would be as an investment to add to the corporation's portfolio I would personally choose a fixed rate bond. The company should invest in a fixed rate bond because they offer a little more stability and predictability. Fixed rates sometimes offer better interest rates and are a little less likely to have rate fluctuations because it is not solely a market based rate. Also by being a Callable bond, if interest rates do fall then they could issue a new bond at a lower rate because the bond could be redeemed prior to reaching maturity. Ultimately out of the three options provided, the fixed rate is a more stable option that is more predictable for the company to be able to use to their advantage and help them manage their cash flows better and provides a consistent coupon. In a journal entry "Why Firms Issue Callable Bonds: Hedging Investment Uncertainty" by Zhaohui Chen, Connie X. Mao, and Yong Wang it states, "The benefit of issuing a