Q 7

"A 5.00 percent corporate coupon bond is callable in 9 years for a call premium of one year of coupon payments.; It is currently offered for sale at $1,080.00; Assuming a par value of $1,000 and semi-annual compounding, what is the price paid to the bondholder if the issuer calls the bond?"

		"$1,080.00 "
		"$1,000.00 "
		"$1,025.00 "
		Not possible to compute with the data provided
		"$1,050.00 "