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Your company is contemplating a bond issue. It is debating whether to include a call provision on the bonds. What is a call provision on
Your company is contemplating a bond issue. It is debating whether to include a call provision on the bonds.
What is a call provision on a bond?
What are the benefits to the company from including a call provision?
What are the costs?
If your company were issuing bonds in today's financial and economic environment, would you advise the CFO to include a call provision on these bonds?
Why? Why not?
Explain in detail.
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