$3.$ A company is contemplating a long$-$ term bond issue. Identify those items below which would benefit

them should they choose to include a call provision.

A$)$ The company could take advantage of interest rate declines by calling in an issue and replacing it with

a lower coupon issue.

B$)$ Calling the issue would allow the company to eliminate a covenant they found to be restrictive, etc.

C$)$ Both $($A$)$ and $($B$)$ above would benefit a company that included a call provision