Multiple Choice
A firm is planning to issue a callable bond with a coupon rate of 8% and 10 years to maturity.A straight bond with a similar coupon is priced at $1,000.If the value of the issuer's call option is $60,what is the value of the callable bond?
A) $940
B) $970
C) $1,000
D) $1,060
Correct Answer:
Verified
Correct Answer:
Verified
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