The Call Premium Is

question 337

Multiple Choice

The call premium is:

• A) Equal to the par value but paid prior to maturity.
• B) Additional compensation paid to a bondholder in exchange for an early redemption.
• C) The 'thou shalts' that must be met prior to the payment of the face value at maturity.
• D) The additional principal paid when a bond is granted an investment grade rating.
• E) The same as the face value but paid prior to maturity.