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A call penalty (i.e., call premium): (A) protects the investor against premature retirement of the bond (B) protects the investor from default (C) refers to

A call penalty (i.e., call premium): (A) protects the investor against premature retirement of the bond (B) protects the investor from default (C) refers to the amount the investor must pay to buy a callable bond (D) refers to the amount the issuer must pay to exercise the call privilege

a.

(A) and (B)

b.

(B) and (C)

c.

(C) and (D)

d.

(A) and (D)

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