A company is contemplating a long-term bond issue. It is debating whether to include a call provision.

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A company is contemplating a long-term bond issue. It is debating whether to include a call provision. What are the benefits to the company from including a call provision? What are the costs? How do these answers change for a put provision?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:19 AM

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A company is contemplating a long-term bond issue. It is debating whether to include a call provision.

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There are two benefits First the company can take ...View the full answer

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