Why would issuers not be willing to pay for this incentive if they feel that interest rates will continue to decline?
What will be an ideal response?
If issuers feel that interest rates will continue to decline, then they are willing to pay a higher call premium and/or issue callable bonds with a higher coupon rate. However, if they believe the decline is limited due to prior declines, then they would not be willing to pay much for the incentive to issue callable bonds. That is, they would not be willing to issue callable bonds with too high of a premium or with too high of a coupon rate.Also, to issue callable bonds, investors must demand them and be willing to take accept what issuers feel are reasonable terms. Issuers will not issue callable bonds if they cannot get the terms they want.
You might also like to view...
Many of the tactics of distributive bargaining and integrative negotiation are ________ tactics-tactics used to exert influence over the other party in the service of achieving the best deal, most commonly only for the self.
Fill in the blank(s) with the appropriate word(s).
Messages denying credit are different from other types of bad-news messages in that they
a. are subject to more legal issues. b. do not need to maintain the goodwill of the recipient. c. do not have to include reasons for refusal. d. use the deductive pattern of organization.
Which one of the following approaches in the open plan concept is especially well suited to provide employees with the amount of storage space their job function requires?
A. Modular B. Cluster workstation C. Hoteling D. Landscape
The analysis of supplier and customer information is likely to create which type of information flows?
a. Internal b. Corporate c. Environmental d. Effective