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1. Which of the following events would make it more likely that a company would call its outstanding callable bonds? a. The company's bonds are downgraded. b. Market interest rates rise sharply. c. Market interest rates decline sharply. d. The company's financial situation deteriorates significantly. e. Inflation increases significantly.

Respuesta :

Answer:

The answer is letter C

Explanation:

Market interest rates decline sharply.

Baraq

The event that would make the company more likely an outstanding callable bond is the Market interest rates decline sharply.

Effect of market rates decline

The callable bonds are more likely to be called by a company when the market rates decline sharply. The company refinances the debt by the issue of new bonds at a lower coupon rate.

Therefore, the correct answer is B.

learn more about the market rates decline sharply: https://brainly.com/question/16969849

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