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Redeeming Bonds before Maturity
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Problem 10
Redeeming Bonds before Maturity
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11. Long Term Liabilities / Redeeming Bonds before Maturity / Problem 10
Problem 10
What is the primary reason a company might choose to redeem bonds before maturity?
A
To extend the bond's maturity date
B
To stop paying interest due to improved cash flow
C
To decrease the bond's face value
D
To increase the bond's interest rate
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