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emmainna [20.7K]
3 years ago
6

The 7 percent, semiannual coupon bonds offered by House Renovators are callable in two years at $1,035. What is the amount of th

e call premium if the bonds have a par value of $1,000?
Mathematics
1 answer:
gayaneshka [121]3 years ago
8 0

Answer:

The call premium is $35

Step-by-step explanation:

Hi, the call premium is found as follows.

Call Premium=CallPrice-Value

CallPremium=1,035-1,000=35

So, the call premium is $35.

Best of luck.

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