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Business, 19.03.2020 22:51 park7497

Matthew recently invested in 15-year Bathtub Brewing Company bonds paying 8% interest annually, with a maturity date of 2035. The bonds are callable in 2030. If interest rates go down to 5.5% in the year 2030, the brewery is likely toa. give bondholders a choice of whether they want to turn the bonds back to the brewery. b. not exercise the call.
c. decrease the interest rate that they are willing to pay the holder. d. exercise the call. e. If interest rates go down, the brewery is likely to call in the bond issue, pay off the investors, and re-issue new bonds at the lower interest rate.

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