QUESTION 29 Archer corporation changed policies, and decided to make their planned non-callable bonds callable after all of the bonds were made calable after 7 years at a 12 call premium, how would this affect their required rate of return? There is no reason to expect a change in the required rate of return Because of the call premium, the required rate of return would decline It would increase because of the added risk to the bondholder. It is impossible to say without more information The required rate of return would decline because the bond would then be less risky to a bondholder