A bond has 6 years until it can be called,a 7 percent coupon,and a $1,000 face value.The bond has a market value of $1,031.90 and a yield to call of 7.35 percent.What is the call premium?
A) $45
B) $55
C) $65
D) $75
E) $85
Correct Answer:
Verified
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