A. $120
B. 1.48%
C. $620
D. $1.48
✅ The correct answer is option C.
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option
= $370 + $250 = $620.
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option
= $370 + $250 = $620.