SOA Exam FM Sample Question 195
Study guide: Exam FM-2
A company's preferred stock will pay level annual dividends forever starting five years from now.
Using an annual effective interest rate of 10%, the modified duration of the stock is D.
Calculate D.
- A) 13.64
- B) 14.55
- C) 15.00
- D) 16.00
- E) 16.50
Answer this question and see the worked solution