Multiple Choice
A 4.5 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?
A) $45
B) $225
C) $1,000
D) $1,045
Correct Answer:

Verified
Correct Answer:
Verified
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