SOA Exam FM Sample Question 97
Study guide: Exam FM-2
An n-year bond with annual coupons has the following characteristics:
- i) The redemption value at maturity is 1890;
- ii) The annual effective yield rate is 6%;
- iii) The book value immediately after the third coupon is 1254.87; and
- iv) The book value immediately after the fourth coupon is 1277.38.
Calculate n.
- A) 16
- B) 17
- C) 18
- D) 19
- E) 20
Answer this question and see the worked solution
Concepts tested
- Bond Amortization
- Accumulation of Discount
- Bonds
- Book Value
- Interest
- Face Value
- Coupon
- Coupon Rate
- Term of Bond