Question: 4) A bond has 6 years until it can be called, a 7 percent coupon, and a $1,000 face value. The bond has 4) a

 4) A bond has 6 years until it can be called,

4) A bond has 6 years until it can be called, a 7 percent coupon, and a $1,000 face value. The bond has 4) a market value of $1,031.90 and a yield to call of 7.35 percent. What is the call premium? A) 65 B) 55 C) 85 D) 75

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