If a bond with a par value of $500 and a call premium of 6% is called in before its maturity date, the firm would have to remitpay the following to the bondholders:

Question

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If the bond is called before its maturity date, the firm has to pay the par value of the bond plus the call premium. In this case, the par value of the bond is $500, and the call premium is 6% of the par value, which is $30. Therefore, the firm would have to remit/pay $530 ($500 + $30) to the bondholders if the bond is called in before its maturity date. Option B is the correct choice.

If a Bond with a Par Value of $500 and a Call