1. Explain how uncertainty concerning future interest rates
would affect the decision to refund a bond...
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Finance
1. Explain how uncertainty concerning future interest rateswould affect the decision to refund a bond issue.
2. Define the following: direct lease, sale-leasebackarrangement, leveraged lease, and financial (capital) lease.
3. What elements must be included in a lease in order for it tobe considered a financial (capital) lease?
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1 A bond issue would be refunded if the current interest rates are less than the interest rates when the bond was issued If the current interest rates have fallen and there is uncertainty regarding the future interest rates then the bonds would most likely be refunded to take advantage of the lower current interest rates However if there is some
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