SOA Exam FM Sample Question 224
Study guide: Exam FM-2
A company has liabilities of 1000 due at the end of each of the next three years. The company will exactly match the cash flows of assets and liabilities. The following zero-coupon bonds are available:
| Maturity | Yield |
|---|---|
| 1-Year | 8% |
| 2-Year | 9% |
| 3-Year | 10% |
Calculate how much more will be invested in the 1-year bond than in the 3-year bond.
- A) 0
- B) 84
- C) 132
- D) 158
- E) 175
Answer this question and see the worked solution