Answer:
When are issuers more likely to call an outstanding bond issue?
When interest rates are lower than they were when the bonds were issued.
When would an issuer call a bond?
An issuer may choose to call a bond when current interest rates drop below the interest rate on the bond. That way the issuer can save money by paying off the bond and issuing another bond at a lower interest rate. This is similar to refinancing the mortgage on your house so you can make lower monthly payments.
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Answer:
When interest rates are lower than they were when the bonds were issued
Step-by-step explanation:
