SOA Exam FM Sample Question 239
Study guide: Exam FM-2
A four-year 1000 face amount bond, with an annual coupon rate of 5% paid semiannually, has redemption value of C. It is bought at a price to yield an annual nominal rate of 6% convertible semiannually. If the term of the bond had been two years, the purchase price would have been 7% less.
Calculate C.
- A) 455
- B) 469
- C) 541
- D) 611
- E) 626
Answer this question and see the worked solution