Q349
Value of option issued to call debt is 670 and return rate on callable bond is 540 then return rate on non-callable bond is
A.
$1,210
B.
$1,010
C.
$130
AnswerD.
$1,020
Answer: Option C
Solution
Answer: Option C
Solution:
Bon-callable bond = Value of option issued to call debt - Return rate on callable bond = 540 = $130.