The call price of a security ________ the security's par value.
A) is less than
B) is equal to
C) is greater than
D) is less than or equal to

Question

Quizplus · Accepted Answer

The call price of a security is the price at which the issuer can redeem the security before its maturity. This price is typically higher than the security's par value since the issuer may have to pay a premium to retire the security early. Therefore, the call price is greater than the security's par value.

The Call Price of a Security ________ the Security's Par