when is a longterm corporate bond more likely to be called e

when is a long-term corporate bond more likely to be called early?

A) when the bond has a non-callability provision

B) when the company can afford to issue new bonds at a significantly lower coupon rate than that of their outstanding bonds

c) when the interest rates in the economy have increased significantly from the time when the bond was first issued

D) When the companies credit rating decreases significantly

E) When the company has filed for bankruptcy protection

Solution

B) when the company can afford to issue new bonds at a significantly lower coupon rate than that of their outstanding bonds