Difference between face value of bond and call price of bond...

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Difference between face value of bond and call price of bond is considered as

A. call premium

B. call provision

C. discount premium

D. discount provision

Answer: Option A

Solution (By Examveda Team)

Difference between face value of bond and call price of bond is considered as call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer.

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