Use the information for the question(s)below.
-Shown above is information from FINRA regarding one of Bank of America's bonds.How much would the holder of such a bond earn each coupon payment for each $100 in face value if coupons are paid semi-annually?
A)$1.49
B)$2.15
C)$2.32
D)$4.30
E)$2.18

Question

Use the information for the question(s)below. 
-Shown above is information from FINRA regarding one of Bank of America's bonds.How much would the holder of such a bond earn each coupon payment for each $100 in face value if coupons are paid semi-annually?
A)$1.49 
B)$2.15 
C)$2.32 
D)$4.30 
E)$2.18

Quizplus · Accepted Answer

The coupon payment for each $100 in face value is calculated by dividing the annual coupon rate by the number of payments per year. If the bond pays semi-annually, the annual coupon rate is divided by 2. The choice B ($2.15) is the correct semi-annual coupon payment for each $100 in face value.

Use the Information for the Question(s)below