A bond is issued with 30 years to maturity and is callable in 10 years. After the initial call in 10 years, the call premium paid if the bond is called thereafter is most likely to:

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Quizplus · Accepted Answer

The call premium typically decreases over time after the initial call period. This is because the issuer wants to make it less costly to call (or redeem) the bond as it gets closer to its maturity date, reducing the extra compensation required to compensate investors for the bond being called early.

A Bond Is Issued with 30 Years to Maturity and Is