Five years ago Brookfield Industries issued 30 year bonds with a 4% coupon rate callable at par after 5 years. Inflation has increased and the yield on bonds similar to Brookfield's is now 6%. Given these facts,
A) Brookfield is almost certain to call the bonds.
B) the yield to call on the Brookfield bonds is now 6%.
C) Brookfield is not likely to call the bonds any time soon.
D) the price of the bonds will remain close to par because of their call value.
Answer: C
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