SOA Exam FM Sample Question 240
Study guide: Exam FM-2
You are given the following information about a fully immunized portfolio:
i) The liability is a single payment of 600,000 due in two years.
ii) The asset portfolio consists of a one-year zero-coupon bond maturing for x and a four-year zero-coupon bond maturing for y.
iii) The annual effective interest rate is 4.6%.
Calculate x.
- A) 218,800
- B) 325,400
- C) 365,600
- D) 382,400
- E) 402,800
Answer this question and see the worked solution