Examveda
Examveda

Call premium of bond is $630 and call price of bond is $240 then face value of bond is

A. 2.63%

B. $870

C. $390

D. $2.63

Answer: Option C

Solution(By Examveda Team)

Face value of bond = Call premium of bond - Call price of bond
= $630 - $240 = $390.

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