The Frederickson Corporation is planning on issuing new 20-year debentures. The only decision is whether the debentures should be noncallable, freely callable or have a deferred call feature. Holding all else constant, which of the following is correct regarding the market interest rate?

Group of answer choices

A The noncallable debenture will carry the highest market interest rate.

B The freely-callable debenture will carry the highest market interest rate.

C All three debentures will carry the same market interest rate.

D It is impossible to indicate which debenture will have the higher market interest rate without more information.

The debenture with the deferred call feature will carry the highest market interest rate.