Ted Owns a Bond Which Is Callable in 2

question 21

Multiple Choice

Ted owns a bond which is callable in 2.5 years.The bond has a 6 percent coupon,pays interest semiannually,has a par value of $1,000,and has a yield to call of 6.3 percent.What is the call premium if the bond currently sells for $1,044.54?

• A) $50
• B) $60
• C) $70
• D) $75
• E) $80

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Definitions:

Retrieve From Memory

The process of recalling or bringing into conscious thought previously stored information or experiences from one's memory.

Accessibility Of Attitudes

The ease with which an attitude can be retrieved from memory, influencing how quickly and consistently it is expressed.

Negative Perception

The interpretation of an event, individual, or information in a pessimistic or unfavorable light.