Question: Bond Features Face Value = $1,000 Coupon Rate = 3.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6

Bond Features Face Value = $1,000 Coupon Rate = 3.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6 The market interest rate in year 6 = 2.00% The call price is equal to $1,050 How much would the company save or lose if it calls the bond in year 6 ?

A.	lose $11.57

B.	lose $12.28

C.	lose $11.92

D.	lose $11.09

E.	lose $12.40

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