Question: Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6

Bond Features

Face Value = $1,000

Coupon Rate = 6.00%

Maturity in Years = 10

Annual Coupons

The bond can be called in year 6

The market interest rate in year 6 = 4.00%

The call price is equal to $1,060

How much would the company save or lose if it calls the bond in year 6 ?

Group of answer choices

A. save $12.98

B. save $12.22

C. save $12.60

D. save $13.10

E. save $11.72

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