Vidyalelo
Management · Q340

International Finance and Treasury

Graduate and Post Graduate · Management · question 340

Q340

Rate of return on non-callable bonds is 370 and value of issuer option is 250 then return on callable bond is

A.
$120
B.
1.48%
C.
$620
Answer
D.
$1.48

Answer: Option C

Solution

Answer: Option C
Solution:
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option
= 250 = $620.