A bond has 5 years until it can be called, a 7 percent coupon, and a $1,000 face value. The bond has a market value of $1,030.40 and a yield to call of 7.28 percent. What is the call premium?
A) $40
B) $50
C) $60
D) $70
E) $80
Correct Answer:
Verified
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