How Much Will You Be Paid If You Own a Bond

question 31

Multiple Choice

How much will you be paid if you own a bond that is called under a make-whole call provision?

• A)the face value
• B)an amount equal to the par value plus the total amount of the remaining interest payments
• C)the present value of all future bond payments that will not be paid because of the call
• D)the current market value plus a prespecified call premium
• E)an amount equal to the normal maturity value of the bond