SOA Exam FM Sample Question 40
Study guide: Exam FM-2
Matt purchased a 20-year par value bond with an annual nominal coupon rate of 8% payable semiannually at a price of 1722.25. The bond can be called at par value X on any coupon date starting at the end of year 15 after the coupon is paid. The lowest yield rate that Matt can possibly receive is a nominal annual interest rate of 6% convertible semiannually.
Calculate X.
- A) 1400
- B) 1420
- C) 1440
- D) 1460
- E) 1480
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