Question 16

"A 3.2% corporate coupon bond is callable in 18 years with a call premium of 1 year of coupon payments and is currently offered for sale at $1,039.90; 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?"

		"$1,039.90 "
		"$1,608.00 "
		"$1,647.90 "
		"$1,032.00 "
		"$1,059.00 "
		$968.00
		"$1,071.90 "