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Management · Q314

International Finance and Treasury

Graduate and Post Graduate · Management · question 314

Q314

Call premium of bond is 560 and call price of bond is 340 then face value of bond is

A.
$1.65
B.
$220
Answer
C.
$900
D.
1.65%

Answer: Option B

Solution

Answer: Option B
Solution:
Face value of bond = Call premium of bond - Call price of bond
= 340 = $220.
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