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Suppose a company issued 30-year bonds some time ago when market interest rates were quite high. The coupon rate on thos...

Suppose a company issued 30-year bonds some time ago when market interest rates were quite high. The coupon rate on those bonds will have been fixed at the higher rates. And since at the time financial managers knew the market rates might change before the 30 years to retire the bonds. They almost certainly made sure??

A. that bonds's YTM was able to be lowered in order to reduce the semi-annual payments.

B. that bonds were able to be called early.

C.that the bonds would default to junk status.

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They almost certainly made sure that bonds were able to be called early and issue new bonds at lower rates

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