A. call premium
B. call provision
C. discount premium
D. discount provision
✅ The correct answer is option A.
Difference between face value of bond and call price of bond is considered as call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer.
Difference between face value of bond and call price of bond is considered as call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer.