Bond Features
Face Value = $1,000
Coupon Rate = 3.00%
Maturity in Years = 10
Annual Coupons
The bond can be called in year 6
The market interest rate in year 6 = 2.00%
The call price is equal to $1,050
How much would the company save or lose if it calls the bond in year 6 ?
A. lose $11.57
B. lose $12.28
C. lose $11.92
D. lose $11.09
E. lose $12.40