Answer: B. The increase in the tender price increases the life of the offer by another 5 business days
Step-by-step explanation:
The options to the question are:
A. The increase in the tender price has no effect on the life of the offer
B. The increase in the tender price increases the life of the offer by another 5 business days
C. The increase in the tender price increases the life of the offer by another 10 business days.
D. The increase in the tender price increases the life of the offer by another 20 business days
From the question, we are informed that an issuer is making a tender offer for its non-convertible bonds and later increases the price being offered by 10%.
It should be noted that a tender offer is a bid for public takeover and in this scenario, the option that is true is that the increase in the tender price increases the life of the offer by another 5 business days.