单选题 The refunding provision found in nonrefundable bonds allows bonds to be retired unless: A. the funds come from the sale of new common stock. B. the funds come from a lower cost bond issue. C. market interest rates have increased substantially.

【正确答案】 B

【答案解析】Refunding from a new debt issue at a higher interest rate is not prohibited, however their purchase cannot be funded by the simultaneous issuance of lower coupon bonds.