Which Factor Would Increase the Likelihood That a Company Would

Multiple Choice

Which factor would increase the likelihood that a company would call its outstanding bonds at this time?

A) The yield to maturity on the company's outstanding bonds increases due to a weakening of the firm's financial situation.
B) A provision in the bond indenture lowers the call price on specific dates, and yesterday was one of those dates.
C) The flotation costs associated with issuing new bonds rise.
D) The firm's CFO believes that interest rates are likely to decline in the future.