Question: How do companies decide whether or not to refund their outstanding bonds? If the NPV as calculated in a bond refunding analysis is positive, does

How do companies decide whether or not to refund their outstanding bonds? If the NPV as calculated in a bond refunding analysis is positive, does that mean that the company should call and refund the bond? What is the effect of calling a bond on its bondholders?

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The bond refunding decision is in essence a capital budgeting decision A bond will be called if inte... View full answer

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