Vidyalelo
Management · Q234

International Finance and Treasury

Graduate and Post Graduate · Management · question 234

Q234

Call premium is 456 and face value of bond is 234 then call price of bonds is

A.
$1.95
B.
1.95%
C.
$222
D.
$690
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Call price of bonds = Call premium + Face value of bond
= 234 = $690.