Under normal conditions,which action 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 makes a bond less attractive to investors because it gives the issuer the option to redeem the bond before its maturity date, usually when interest rates have fallen. To compensate for this added risk, issuers must offer a higher coupon rate to issue the bond at par.

Under Normal Conditions,which Action Would Be Most Likely to Increase