Under normal conditions, which of the following would be most likely to increase the coupon rate required to enable a bond to be issued at par?

Question

Quizplus · Accepted Answer

Adding a call provision increases the risk to bondholders because the issuer can redeem the bond before maturity, potentially at a time when interest rates are lower. This increased risk typically requires a higher coupon rate to compensate investors.

Under Normal Conditions, Which of the Following Would Be Most