SOA Exam FM Sample Question 151
Study guide: Exam FM-2
A company must pay liabilities of 4000 and 6000 at the end of years one and two, respectively. The only investments available to the company are one-year zero-coupon bonds with an annual effective yield of 8% and two-year zero-coupon bonds with an annual effective yield of 11%.
Determine how much the company must invest today to exactly match its liabilities.
- A) 8,473
- B) 8,573
- C) 8,848
- D) 9,109
- E) 10,000
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