The call premium is $640 and the face value of the bond is $285 then the call price of bonds is
Correct answer: C. 925
- A. 2.25
- B. 355
- C. 925
- D. 0.0225
Explanation
The call price is found by adding the face value and call premium: $285 + $640 = $925. Thus, the premium increases the amount paid to redeem the bond.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The call premium is $456 and the face value of the bond is $234 then the call price of bonds is
According to marketability feature, the bonds which are attached to stock warrants have ___________?
The bonds issued by corporations for relatively longer term are classified as
The current selling price of the municipal bonds available to bond holders is used to calculate
As compared to Treasury bonds, the trading of municipal bonds in trading market is considered as _________?
The financial securities issued by the local and state governments are classified as _________?