Question
A $1,000 face value bond has a 6.0% coupon and pays interest semiannually. The bond matures in 10 years and is callable in 5 years.
A $1,000 face value bond has a 6.0% coupon and pays interest semiannually. The bond matures in 10 years and is callable in 5 years. If the yield to call is 5.5%. What is the call premium if the bond's current market price is $1,089.45?
A. $89
B. $98
C. $52
D. $65
E. $74
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Forex This Book Includes Forex Beginners Forex
Authors: Jordon Sykes
1st Edition
154063180X, 978-1540631800
