SOA Exam FM Sample Question 81
Study guide: Exam FM-2
An investor owns a bond that is redeemable for 300 in seven years. The investor has just received a coupon of 22.50 and each subsequent semiannual coupon will be X more than the preceding coupon. The present value of this bond immediately after the payment of the coupon is 1050.50 assuming an annual nominal yield rate of 6% convertible semiannually.
Calculate X.
- A) 7.54
- B) 10.04
- C) 22.37
- D) 34.49
- E) 43.98
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