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A $1,000 Face Value Bond Can Be Redeemed Early at the Issuer's

Question 29

Multiple Choice

A $1,000 face value bond can be redeemed early at the issuer's discretion for $1,030, plus any accrued interest. The additional $30 is called the:


A) dirty price.
B) redemption value.
C) call premium.
D) original-issue discount.
E) redemption discount.

Correct Answer:

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