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This question belongs to Management International Finance And Treasury

International Finance and Treasury

?

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 & Solution

Correct Answer: Option C

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

Question posted by Examveda

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