Face value of bond is 550 and call price of bond...

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Examveda

Face value of bond is $550 and call price of bond is $475 then value of call premium is

A. $1.16

B. $1,025

C. $75

D. 1.16%

Answer: Option C

Value of call premium = Face value of bond - Call price of bond
= $550 - $475 = $75.

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