SOA Exam FM Sample Question 93
Study guide: Exam FM-2
An investor purchased a 25-year bond with semiannual coupons, redeemable at par, for a price of 10,000. The annual effective yield rate is 7.05%, and the annual coupon rate is 7%.
Calculate the redemption value of the bond.
- A) 9,918
- B) 9,942
- C) 9,981
- D) 10,059
- E) 10,083
Answer this question and see the worked solution