SOA Exam FM Sample Question 206
Study guide: Exam FM-2
Bond X and Bond Y are n-year bonds with face amount of 10,000 and semiannual coupons, each yielding an annual nominal interest rate of 7% convertible semiannually. Bond X has an annual coupon rate of 6% and redemption value c. Bond Y has an annual coupon rate of 5% and redemption value c + 50. The price of Bond X exceeds the price of Bond Y by 969.52.
Calculate n.
- A) 14
- B) 17
- C) 23
- D) 34
- E) 46
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