What "incentive" is this article referring to in the first sentence of the excerpt?
What will be an ideal response?
The call option embedded in a callable bond becomes more valuable when issuers expect interest rates to fall. The likelihood of this occurring is greater if interest rates are believed to be high. However, since interest rates have fallen (and even bottomed out), issuers have lost their incentive to issue callable bonds.
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The quality of retailers is good in most ____________ countries, but is variable at best in emerging markets and less developed countries
Fill in the blank(s) with the appropriate word(s).
Sherman Hats, Inc has two product lines—batting helmets and football helmets
The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $930,000 $600,000 $330,000 Variable costs (550,000 ) (250,000 ) (300,000 ) Contribution margin $380,000 $350,000 $30,000 Fixed costs (172,000 ) (80,000 ) (92,000 ) Operating income (loss) $208,000 $270,000 $(62,000 ) Assuming the football helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $110,000 per year, how will operating income be affected? A) Operating income will increase by $80,000. B) Operating income will increase by $30,000. C) Operating income will decrease by $30,000. D) Operating income will decrease by $80,000.