Question: Imagine that a 30-year maturity, callable bond has a deferred call of twelve years. This bond has an initial 8.70% call premium rate. If an

Imagine that a 30-year maturity, callable bond has a deferred call of twelve years. This bond has an initial 8.70% call premium rate. If an investor wishes to call the bond four years after its call deferment, what will be the decline in call premium rate? What will be the call premium paid to the investor? What is the call price of this bond?

0.6827% decline, $49.10 call premium, and $1,067.70 call price

0.6827% decline, $67.70 call premium, and $1,115.00 call price

0.4833% decline, $67.70 call premium, and $1,067.70 call price

0.4833% decline, $61.40 call premium, and $1,048.20 call price

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