6 Are investors really made whole with a make-whole call provision?

Larissa Warren, the owner of West Coast Yachts, has decided to expand her operations. She asked her newly hired financial analyst, Dan Ervin, to enlist an underwriter to help sell £30 million in new 20-year bonds to finance new construction. Dan has entered into discussions with Robyn Perry, an underwriter from the firm of Crowe & Mallard, about which bond features West Coast Yachts should consider and also what coupon rate the issue is likely to have. Although Dan is aware of bond features, he is uncertain of the costs and benefits of some features, so he is not sure how each feature would affect the coupon rate of the bond issue.