SOA Exam FM Sample Question 96
Study guide: Exam FM-2
An investor owns a bond that is redeemable for 250 in 6 years from now. The investor has just received a coupon of c and each subsequent semiannual coupon will be 2% larger than the preceding coupon. The present value of this bond immediately after the payment of the coupon is 582.53 assuming an annual effective yield rate of 4%.
Calculate c.
- A) 32.04
- B) 32.68
- C) 40.22
- D) 48.48
- E) 49.45
Answer this question and see the worked solution