SOA Exam FM Sample Question 138
Study guide: Exam FM-2
You are given the following information about a 20-year bond with face amount 7500:
i) The bond has an annual coupon rate of 7.4% paid semiannually. ii) The purchase price results in an annual nominal yield rate to the investor of 5.3% convertible semiannually. iii) The amount for amortization of premium in the fourth coupon payment is 28.31.
Calculate the redemption value of the bond.
- A) 7660
- B) 7733
- C) 7795
- D) 7879
- E) 7953
Answer this question and see the worked solution
Concepts tested
- Bond Amortization
- Amortization of Premium
- Bonds
- Book Value
- Interest
- Face Value
- Coupon
- Coupon Rate
- Term of Bond