Examveda
Examveda

Face value of bond is $450 and call price of bond is $250 then value of call premium is

A. 1.80%

B. $200

C. $700

D. $1.80

Answer: Option B

Solution(By Examveda Team)

Value of call premium = Face value of bond - Call price of bond
= $450 - $250 = $200.

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