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
AnswerD.
$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.