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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