If the yield on a non-callable bond is $370 and the value of the issuer's call option is $250, what is the yield on the callable bond?

Bond Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Bond Marketsfinance-mcqs › bond-markets
Published
10 Apr 2023
Last updated
28 May 2026

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Explanation

The yield on the callable bond is calculated by adding the yield on the non-callable bond ($370) to the value of the issuer's call option ($250), resulting in $620.

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