SOA Exam FM Sample Question 196
Study guide: Exam FM-2
A three-year bond with a face value of 1000 pays coupons semiannually. The bond is redeemable at face value. It is bought at issue at a price to produce an annual yield rate of 10% convertible semiannually. If the term of the bond is doubled and the yield rate remains the same, the purchase price would decrease by 49.
Calculate the amount of a coupon.
- A) 37
- B) 46
- C) 54
- D) 63
- E) 74
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