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A 6% corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par value of
A 6% corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par value of $1000, what is the total amount paid to bondholders if the issuer calls the bond?
a. $60
b. $600
c.$1,000
d. $1,060
(please show the work on how to find the answer without using a financial calculator)
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