Multiple Choice
A 30-year bond with an 8% coupon has a yield to maturity of 6%. The bond could be called in 7 years and if called would generate a yield to call of 5.75%. What is this bond's call premium? Assume the coupon payments are made annually and par value is $1,000.
A) $219.73
B) $152.64
C) $106.29
D) $301.76
Correct Answer:
Verified
Correct Answer:
Verified
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