The conditions where a bond is likely to be called include:
- When the firm is in financial duress.
- When the firm is planning a massive expansion and needs to raise a lot of capital.
- Interest rates have significantly declined.
- The firm wants to increase its debt ratio
<h3>What is a bond?</h3>
It should be noted that a bond is a type of security where the issuer owes the holder a debt, and is obliged to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
Therefore, the conditions where a bond is likely to be called include when the firm is in financial duress, when the firm is planning a massive expansion and needs to raise a lot of capital, etc.
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