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A 6 Percent Corporate Coupon Bond Is Callable in 10

Question 9

Multiple Choice

A 6 percent corporate coupon bond is callable in 10 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) $60
B) $600
C) $1,000
D) $1,060

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