Tucker Corporation Is Planning to Issue New 20-Year Bonds

Tucker Corporation is planning to issue new 20-year bonds.Initially,the plan was to make the bonds noncallable.If the bonds were made callable after 5 years at a 5% call premium,how would this affect their required rate of return?

A) Because of the call premium, the required rate of return would decline.
B) There is no reason to expect a change in the required rate of return.
C) The required rate of return would decline because the bond would then be less risky to a bondholder.
D) The required rate of return would increase because the bond would then be more risky to a bondholder.