A 6-percent corporate coupon bond is callable in 10 years


A 6-percent corporate coupon bond is callable in 10 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? a. $60 b. $600 c. $1000 d. $1060

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Financial Management: A 6-percent corporate coupon bond is callable in 10 years
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