SOA Exam FM Sample Question 95
Study guide: Exam FM-2
A bank issues three annual coupon bonds redeemable at par, all with the same term, price, and annual effective yield rate.
The first bond has face value 1000 and annual coupon rate 5.28%.
The second bond has face value 1100 and annual coupon rate 4.40%.
The third bond has face value 1320 and annual coupon rate r.
Calculate r.
- A) 2.46%
- B) 2.93%
- C) 3.52%
- D) 3.67%
- E) 4.00%
Answer this question and see the worked solution