Chevalier Manufacturing issued a callable bond with a 2020 maturity date.The bond was sold at par and the call premium was set equal to the coupon rate of 20%.A declining call premium was also in place so that the premium declined evenly over the last ten years of premium to zero.What would be the call premium if the bond was called in 2011?
A) € 18
B) € 20
C) €180
D) €200
E) Cannot calculate without market price.
Correct Answer:
Verified
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