the 7 percent, semiannual coupon bonds offered by house renovators are callable in two years at $1035. What is the amount of the call premium if the bonds have a par value of $1000?

$35

Explanation:

Calculation of the amount of the call premium on a $1,000 par value bond

Using this formula

Call premium= Amount of Semiannual coupon bonds- Bonds have par value

Let plug in the formula

Call premium =$1,035-$1,000

Call premium =$35

Therefore the amount of the call premium if the bonds have a par value of $1000 will be $35

answer; test-retest;