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A Bond Has 6 Years Until It Can Be Called,a

Question 73

Multiple Choice

A bond has 6 years until it can be called,a 7 percent coupon,and a $1,000 face value.The bond has a market value of $1,031.90 and a yield to call of 7.35 percent.What is the call premium?


A) $45
B) $55
C) $65
D) $75
E) $85

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