SOA Exam FM Sample Question 47
Study guide: Exam FM-2
A 40-year bond is purchased at a discount. The bond pays annual coupons. The amount for accumulation of discount in the 15th coupon is 194.82. The amount for accumulation of discount in the 20th coupon is 306.69.
Calculate the amount of discount in the purchase price of this bond.
- A) 13,635
- B) 13,834
- C) 16,098
- D) 19,301
- E) 21,135
Answer this question and see the worked solution
Concepts tested
- Bond Amortization
- Amortization of Premium
- Bonds
- Book Value
- Discount
- Amortization
- Face Value
- Coupon
- Coupon Rate