The Call Premium Is

Multiple Choice

The call premium is:

A) Equal to the par value but paid prior to maturity.
B) Additional compensation paid to a bondholder in exchange for an early redemption.
C) The 'thou shalts' that must be met prior to the payment of the face value at maturity.
D) The additional principal paid when a bond is granted an investment grade rating.
E) The same as the face value but paid prior to maturity.