Answered

Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures?

Answer :

TomShelby

Answer:

When interest rate are higher than coupon rate the company may want to purchase the bond in the open market

Explanation:

As the market value of the bond is considered as the present value of the coupon and maturity discounted at market rate a higher rate will make the present value of the bond to decrease therefore, below par. this makes the company a better option to purchase the bond rather than calling if it wants to retire the bonds.

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