A company refunds its bonds for any of the following reasons Except for:
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A. B. C. D.D
Sure, I'd be happy to help explain the answer to this question!
When a company issues bonds, it is essentially borrowing money from investors. These bonds typically have a fixed interest rate and a set maturity date, at which point the company must repay the principal amount borrowed.
In some cases, a company may choose to refund or redeem its bonds before the maturity date. This can be done for a variety of reasons, such as to take advantage of lower interest rates or to eliminate restrictive covenants that may be associated with the bonds.
However, there is one reason listed in the question that is not a valid reason for a company to refund its bonds: to show higher reported profits.
Refunding bonds does not actually generate any new profits for a company. Instead, it simply involves replacing existing debt with new debt, which may have different terms or a different interest rate. While this may have some impact on a company's financial statements, it does not actually increase the company's underlying profitability.
Therefore, the correct answer to this question is C: To show higher reported profits.