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Suppose a company issued 30-year bonds 4 years ago, when the yield curve was downward sloping.Since then, long-term rates (10 years or longer) have remained
Suppose a company issued 30-year bonds 4 years ago, when the yield curve was downward sloping.Since then, long-term rates (10 years or longer) have remained constant although the yield curve has resumed its normal upward slope.Under such conditions, a bond refunding would be
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