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Tucker Corporation is planning to issue new 20-year bonds. The current plan is to make the bonds 5% call non-callable, but this may be changed.
Tucker Corporation is planning to issue new 20-year bonds. The current plan is to make the bonds 5% call non-callable, but this may be changed. If the bonds are made callable after 5 years at premium, how would this affect their required rate of return? O Because of the call premium, the required rate of return would decline. O The required rate of return would increase because the bond would then be riskier to a bondholder. O There is no reason to expect a change in the required rate of return. O It is impossible to say without more information. O The required rate of return would decline because the bond would then be less risky to a bondholder.
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