SOA Exam FM Sample Question 226
Study guide: Exam FM-2
The price of a 36-year zero-coupon bond is 80% of its face value.
A second bond, with the same price, same face value, and same annual effective yield rate, offers annual coupons with the coupon rate equal to \dfrac{4}{9} of the annual effective yield rate.
Calculate the number of years until maturity for the second bond.
- A) 45
- B) 54
- C) 63
- D) 72
- E) 81
Answer this question and see the worked solution