When pricing callable municipal bonds, the "price to call" is based upon which of the following?
A)in-whole calls
B)partial calls
C)sinking fund calls
D)catastrophe calls

Question

Quizplus · Accepted Answer

in-whole calls. Price to call computations are based upon in-whole calls only. These calls will result in all bondholders being called simultaneously, thus guaranteeing a minimum yield to all.

When Pricing Callable Municipal Bonds, the "Price to Call" Is