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XYZ Corporation Wants to Retire a $60 Million Bond Issue

Question 45

Multiple Choice

XYZ Corporation wants to retire a $60 million bond issue before the maturity date.In order to call the bonds in this issue,the corporation must pay the bondholders the face value plus a premium.What is the typical premium for bonds that have been called?


A) $100
B) $50-$100
C) $20-$75
D) $10-$25
E) $1-$10

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