SOA Exam FM Sample Question 100
Study guide: Exam FM-2
Annuity A pays 1 at the beginning of each year for three years. Annuity B pays 1 at the beginning of each year for four years.
The Macaulay duration of Annuity A at the time of purchase is 0.93. Both annuities offer the same yield rate.
Calculate the Macaulay duration of Annuity B at the time of purchase.
- A) 1.240
- B) 1.369
- C) 1.500
- D) 1.930
- E) 1.965
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