SOA Exam FM Sample Question 315
Study guide: Exam FM-2
Each of bonds A, B, and C sells for 10,000 and has the same annual effective yield rate and term. The par values and coupon rates are shown below.
| Bond A | Bond B | Bond C | |
|---|---|---|---|
| Par Value | 20,000.00 | 10,835.58 | X |
| Annual Coupon Rate | 0% | 4% | 3% |
Each bond is redeemed at par, and all coupons are paid annually.
Calculate X.
- A) 12,240
- B) 12,630
- C) 13,130
- D) 13,540
- E) 14,450
Answer this question and see the worked solution