Call premium is added to face value of bond to calculate...

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Call premium is added to face value of bond to calculate

A. call price of bond

B. premium price of bond

C. call price of stock

D. discounted price of stock

Answer: Option A

Solution (By Examveda Team)

Call premium is added to face value of bond to calculate call price of bond. The call price is the price a bond issuer or preferred stock issuer must pay investors if it wants to buy back, or call, all or part of an issue before the maturity date.

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