If a bond has a basis price of 7%, which of the following would most likely be refunded?
A) Coupon 7-½%, maturing in 2033, callable in 2013 at 103.
B) Coupon 7-½%, maturing in 2033, callable in 2013 at 100.
C) Coupon 6-½%, maturing in 2033, callable in 2013 at 100.
D) Coupon 6-½%, maturing in 2033, callable in 2013 at 103.
Answer: B) Coupon 7-½%, maturing in 2033, callable in 2013 at 100.