Maneesh 02 May 2020 at 13:30 PM

Which of the following scenarios would encourage a company to use short-term loans to retire its 10-year bonds that have 5 years until maturity?
A) Interest rates have increased over the last 5 years.
B) Interest rates have declined over the last 5 years.
C) The company is experiencing cash flow problems.
D) The company expects interest rates to increase over the next 5 years