SOA Exam FM Sample Question 263
Study guide: Exam FM-2
An 18-year bond, with a price 61% higher than its face value, offers annual coupons with the coupon rate equal to 2.25 times the annual effective yield rate.
An n-year bond, with the same face value, coupon rate, and yield rate, sells for a price that is 45% higher than its face value.
Calculate n.
- A) 10
- B) 12
- C) 14
- D) 17
- E) 20
Answer this question and see the worked solution