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Definitions: A call provision allows the initial borrower of thebond to pay off the bond early. A call premium is an additional feethat the borrower must pay in order to call it off early. Most

Definitions: A call provision allows the initial borrower of thebond to pay off the bond early. A call premium is an additional feethat the borrower must pay in order to call it off early. Most callprovisions almost always include call premiums.

Now that you have the definitions... explain to me WHY youusually include a call premium if you have a call provision in thebond. What is the premium accounting for?

Jun 01 2021 View more View Less

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