Multiple Choice
Ted owns a bond which is callable in 2.5 years.The bond has a 6 percent coupon,pays interest semiannually,has a par value of $1,000,and has a yield to call of 6.3 percent.What is the call premium if the bond currently sells for $1,044.54?
A) $50
B) $60
C) $70
D) $75
E) $80
Correct Answer:
Verified
Correct Answer:
Verified
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