SOA Exam FM Sample Question 269
Study guide: Exam FM-2
A three-year bond with face amount X and a coupon of 4 paid at the end of every six months is priced at 90.17. A three-year bond with face value of 1.6X and a coupon of 4 paid at the end of every six months is priced at 132.47. Both have the same yield rate.
Calculate the annual nominal yield rate, convertible semiannually.
- A) 6%
- B) 8%
- C) 9%
- D) 11%
- E) 12%
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