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    Company choose to call its outstanding bonds

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    Which of the following factors will increase the likelihood that a company will choose to call its outstanding bonds?

    a. An increase in the yield to maturity on the company's outstanding bonds.
    b. An increase in the call price of the outstanding bonds.
    c. A reduction in the flotation costs associated with issuing new bonds.
    d. Answers a and c are correct.
    e. None of the answers above is correct.

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    The solution identify factors that will increase the likelihood that a company will choose to call its outstanding bonds?

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