Acallable bond: group of answer choices would usually have a lower yield than a similar non-callable bond. is attractive to the buyer because the immediate receipt of principal and premium usually produces a higher return. is more apt to be called when interest rates are high because the interest savings will be greater. generally has a higher credit rating than a similar non-callable bond. is attractive to the issuer because it allows the issuer to prepay outstanding debt if new debt can be issued at lower rates.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%