SOA Exam FM Sample Question 317
Study guide: Exam FM-2
A bank issues two 30-year bonds, A and B, each with annual coupons, an annual effective yield rate of 7%, and a face amount of 1000. The total price of these two bonds is 3000.
Bond B's annual coupon rate is equal to Bond A's annual coupon rate plus 0.5%.
Calculate the annual coupon rate of Bond A.
- A) 10.06%
- B) 10.78%
- C) 10.90%
- D) 11.31%
- E) 11.84%
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