Examveda

Face value of bond is $685 and call price of bond is $378 then value of call premium is

A. $307

B. $1,063

C. $2,063

D. $3,063

Answer: Option A

Solution (By Examveda Team)

Value of call premium = Face value of bond - Call price of bond
= $685 - $378 = $307.

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