Question

How much will you be paid if you own a bond that is called under a make-whole call provision?
A. the face value
B. an amount equal to the par value plus the total amount of the remaining interest payments
C. the present value of all future bond payments that will not be paid because of the call
D. the current market value plus a prespecified call premium
E. an amount equal to the normal maturity value of the bond

Answer

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