Which of the following scenario's is most likely to result in a bond being called? A. 10-year
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Question:
Which of the following scenario's is most likely to result in a bond being called?
A. 10-year bond with 2 remaining 8% coupon payments in a 7% interest rate environment
B. 20-year bond with 30 remaining 8% coupon payments in a 8% interest rate environment
C. 20-year bond with 30 remaining 8% coupon payments in a 10% interest rate environment
D. 20-year bond with 30 remaining 8% coupon payments in a 6% interest rate environment
E. 10-year bond with 2 remaining 8% coupon payments in a 9% interest rate environment
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