SOA Exam FM Sample Question 91
Study guide: Exam FM-2
A company plans to invest X at the beginning of each month in a zero-coupon bond in order to accumulate 100,000 at the end of six months. The price of each bond as a percentage of redemption value is given in the following chart:
| Maturity (months) | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| Price | 99% | 98% | 97% | 96% | 95% | 94% |
Calculate X given that the bond prices will not change during the six-month period.
- A) 15,667
- B) 16,078
- C) 16,245
- D) 16,667
- E) 17,271
Answer this question and see the worked solution