单选题

If a bank wants the ability to retire debt prior to maturity in order to take advantage of lower borrowing rates, it most likely issues a:

A、 callable bond.
B、 putable bond.
C、 convertible bond.

【正确答案】 A

【答案解析】

Callable bonds give issuers the ability to retire debt prior to maturity. The most compelling reason for them to do so is to take advantage of lower borrowing rates,