Q345
Rate of return on non-callable bonds is 680 and value of issuer option is 450 then return on callable bond is
A.
$230
B.
1.52%
C.
$1.52
D.
$1,130
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option = 450 = $1,130.