Ranger Ine. would like to issue new $20-$year honds, Initially, the plan was to make the boods noo$-$callable. If the boods were made callable affer $5$ years at a $56$ call premium, how would this affect their required rate of return?

a$.$ It is impossible to say without more information.

b$.$ The required rate of return would increase because the bond would then be more risky to a bondholder.

C$.$ There is no reason to expect a change in the required rate of return.

d$.$ Because of the call premium, the required rate of return would decline.

e$.$ The required rate of return would decline because the band would then be less risky to a bondholder.