SOA Exam FM Sample Question 42
Study guide: Exam FM-2
Sue purchased a 10-year par value bond with an annual nominal coupon rate of 4% payable semiannually at a price of 1021.50. The bond can be called at par value X on any coupon date starting at the end of year 5. The lowest yield rate that Sue can possibly receive is an annual nominal rate of 6% convertible semiannually.
Calculate X.
- A) 1120
- B) 1140
- C) 1160
- D) 1180
- E) 1200
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