Vidyalelo
Management · Q351

International Finance and Treasury

Graduate and Post Graduate · Management · question 351

Q351

Rate of return on non-callable bonds is 890 and value of issuer option is 670 then return on callable bond is

A.
1.33%
B.
$1,560
Answer
C.
$220
D.
$1.33

Answer: Option B

Solution

Answer: Option B
Solution:
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option
= 670 = $1,560