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Call Premium A 5.25 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a

Call Premium A 5.25 percent corporate coupon bond is callable in four 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?

  • $210.00

  • $52.50

  • $1,000.00

  • $1,052.50

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