To compensate the bondholders for getting the bond called, the issuer pays which of the following?
A) call feature
B) call premium
C) coupon rate
D) original issue premium

Name: To compensate the bondholders for getting the bond called, the issuer pays which of the following? A) call feature B) call premium C) coupon rate D) original issue premium
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The issuer pays a call premium to compensate bondholders for the bond being called before its maturity. This is an extra amount over the bond's face value.

To Compensate the Bondholders for Getting the Bond Called, the Issuer