SOA Exam FM Sample Question 290
Study guide: Exam FM-2
A steel company issued a ten-year 1,000,000 face amount bond on March 1, 2002 with an annual nominal coupon rate of 8% paid semiannually.
On September 2, 2004, Company X paid 1,100,000 for this bond to yield an annual nominal rate of i convertible semiannually.
Calculate i.
- A) 4.0%
- B) 5.5%
- C) 6.3%
- D) 8.0%
- E) 9.7%
Answer this question and see the worked solution