A 15-year bond with a 10% coupon has a yield to maturity of 8%. The bond could be called in 4 years and if called would generate a yield to call of 6%. What is this bond's call premium? Assume the coupon payments are made semi-annually and par value is $1,000.
A) $19.73
B) $81.87
C) $41.20
D) $66.03

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The Answer of A 15-year bond with a 10% coupon has a yield to maturity of 8%. The bond could be called in 4 years and if called would generate a yield to call of 6%. What is this bond's call premium? Assume the coupon payments are made semi-annually and par value is $1,000.
A) $19.73
B) $81.87
C) $41.20
D) $66.03

A 15-Year Bond with a 10% Coupon Has a Yield