Ask Question
BusinessBusiness
28 November, 10:49

A $1,000 face value bond can be redeemed early at the issuer's discretion for $1,030, plus any accrued interest. The additional $30 is called which one of the following? Question 11 options: call premium original-issue discount redemption discount dirty price redemption value?

+3
Answers (1)
  1. 28 November, 11:48
    0
    call premium

    Explanation:

    The bonds has certain conditions and one of them is the right of the issuer to purchase the bonds therefore, extinguish the debt before the maturity expressed in the bond. As this is a change to the original terms usually the issuer is forbidden to do so in the first years of the bond or it can do it at given dates. In any case, the issuer pays a premium for this right to compensate the bondholders
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A $1,000 face value bond can be redeemed early at the issuer's discretion for $1,030, plus any accrued interest. The additional $30 is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The body of a persuasive request must build interest and explain the purpose of the request logically and concisely. Which of the following best describes the kind information to include? a.
Answers (1)
One of the characteristics of a tax is that the tax should be fair; what is this characteristic called? Efficiency Certainty Simplicity Equity
Answers (1)
Which of the following statements is correct? A. If a customer returns a product, sales revenue will be credited. B. A company must accrue for estimated future returns at the end of the period in which the related sales revenue is recognized. C.
Answers (1)
What makes the managerial task of executing strategy so challenging and demanding is the trial-and-error experimentation that is required to come up with a workable organizational structure.
Answers (1)
Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased.
Answers (1)
New Questions in Business
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $700,000 and sold the bonds on January 3, 2019, for $702,000.
Answers (1)
Why might the cartel model still make sense even when OPEC produces less than half of the world's oil?
Answers (1)
Your best friend says they don't think insurance is important. Explain to them why it is important to have insurance. How is having insurance important for successful financial management?
Answers (1)
As a smart customer you are always on the lookout for sales coupons and rebates while shopping for new clothes you notice that one particular brand of shirts is on sale for 20% off the original price you also h e a coupon for 10$ off a 40$ purchase
Answers (1)
Jester Corporation's most recent income statement appears below: Income Statement Sales (all on account) $ 230,000 Cost of goods sold 135,000 Gross margin 95,000 Selling and administrative expense 43,000 Net operating income 52,000 Interest expense
Answers (1)
Home » Business » A $1,000 face value bond can be redeemed early at the issuer's discretion for $1,030, plus any accrued interest.
Sign Up Forgot Password?