SOA Exam FM Sample Question 50
Study guide: Exam FM-2
Kylie bought a 7-year, 5000 par value bond with an annual coupon rate of 7.6% paid semiannually. She bought the bond with no premium or discount.
Calculate the Macaulay duration of this bond with respect to the yield rate on the bond.
- A) 5.16
- B) 5.35
- C) 5.56
- D) 5.77
- E) 5.99
Answer this question and see the worked solution