From the Corporate Perspective Callable Bonds May Have Value Over

Multiple Choice

From the corporate perspective callable bonds may have value over non-callable bonds because:

A) the corporation has the option to control market interest rates.
B) interest rates may rise prohibiting the holders from earning higher returns.
C) call prices vary inversely with the interest rates.
D) the corporation has the option to call the bond if interest rates fall.
E) the corporation has the option to call the bond if interest rates rise.