An assistant portfolio manager reviewed the prospectus of a bond that will be issued next week on January 1 of 2020, The call schedule for this $200 million, 7.75% coupon 20-year issue specifies t he following The Bonds will be redeemable at the option of the Company at any time in whole or in part, upon not fewer than 30 nor more than 60 days' notice, at the following redemption prices (which are expressed in percentages of principal amount) in each case together with accrued interest to the date fixed for redemption. . If redeemed during the 12 months beginning January 1, 2020 through 2025 104.00% 2026 through 2030 103.00% 2031 through 2032 101.00% from 2033 on 100.00% provided, however, that prior to January 1, 2026, the Company may not redeem any of the Bonds pursuant to such option, directly or indirectly, from or in anticipation of the proceeds of the issuance of any indebtedness for money borrowed having an interest cost of less than 7.75% per annum. The prospectus further specifies that: The Company will provide for the retirement by redemption of $10 million of the principal amount of the Bonds each of the years 2030 to and including 2039 at the principal amount thereof, together with accrued interest to the date of redemption. The Company may also provide for the redemption of up to an additional $10 million principal amount...annually,... such optional right being non-cumulative. The assistant portfolio manager made the following statements to a client after reviewing this bond issue a. "My major concern is that if rates decline significantly in the next few years, this issue will be called by the Company in order to replace it with a bond issue witha coupon rate less than 7.75%." b. "One major advantage of this issue is that if the Company redeems it for any reason in the first five years, investors are guaranteed receiving a price of 104, a premium over the initial offering price of 100." c. "A beneficial feature of this issue is that it has a sinking fund provision that reduces the risk that the Company won't have enough funds to pay off the issue at the maturity date." d. "A further attractive feature of this issue is that the Company can accelerate the payoff of the issue via the sinking fund provision, reducing the risk that funds will not be available at the maturity date." e. In response to a client question about what will be the interest and principal that the client can depend on if $5 million par value of the issue is purchased, the assistant portfolio manager responded: "I can construct a schedule that shows every six months for the next 20 years the dollar amount of the interest and the principal repayment. It is quite simple to compute-basically it is just multiplying two numbers." Briefly comment on each statement using information from the prospectus and/or the text and class. Answers should name and explain specific concepts behind the assistant portoflio manager's statement or your comment. Answers should be based your analysis, not on your opinion. When answering this question, remember that the assistant portfolio manager is speaking just before the bond was issued and therefore has no certain knowledge of how events may play out after the bond is issued