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If You Own a Bond That Is Called Under a Make-Whole

Question 50

Multiple Choice

If you own a bond that is called under a make-whole call provision, you will be paid a call price which is


A) Equal to the face value
B) Equal to the par value plus the total amount of the remaining interest payments
C) Approximately equal to the current value of the bond
D) Based on the market value plus a call premium of a specified dollar amount
E) Approximately equal to the future value of the bond at normal maturity

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