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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.

This Question Belongs to Management >> International Finance And Treasury

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