Use of Financial Calculator TI BA II Plus required. Leonardo purchased a bond today with an 8 percent semi-annual coupon and with a face value of $15 000. A semi-annual coupon is due in exactly one month and the bond was priced at 94.8. What was the total price for the bond?

Question

Quizplus · Accepted Answer

The bond price is calculated as 94.8% of the face value, which is $14,220. Since a semi-annual coupon is due in one month, the accrued interest for one month must be added. The semi-annual coupon is $600 (8% of $15,000 divided by 2), so the accrued interest for one month is $100 ($600/6). Therefore, the total price is $14,220 + $100 = $14,320. However, the correct choice is $14,770, indicating a calculation error or misinterpretation in the options provided.

Use of Financial Calculator TI BA II Plus Required