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Call premium of one year of coupon payments

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Reference no: EM131213972

A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder, if the issuer calls the bond?

a. $60

b. $600

c. $1000

d. $1060

Reference no: EM131213972

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