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Answer :
The average income per interest payment interval is $60. 75, which is closest to answer c. $61.61.
To calculate the average income per interest payment interval, we need to determine the semi-annual coupon payment.
Given:
Face value of the bond (redeemable at par) = $1500
Coupon rate = 8.1%
Bond purchase price = 97.7% of face value
Coupon payment = Coupon rate * Face value / 2
Coupon payment = 8.1% * $1500 / 2
Coupon payment = $121.50
The bond pays semi-annual coupons, so there are two interest payment intervals per year.
Average income per interest payment interval = Coupon payment / Number of interest payment intervals per year
Average income per interest payment interval = $121.50 / 2
Average income per interest payment interval = $60.75.
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