SOA Exam FM Sample Question 318
Study guide: Exam FM-2
A ten-year bond with a face amount of 1000, a redemption value of C, and an annual coupon rate of 7% paid semiannually is purchased at a discount to yield an annual nominal rate of 7.5%, convertible semiannually.
The accumulation of discount in the 12th coupon is 7.
Calculate C.
- A) 673
- B) 799
- C) 1193
- D) 1344
- E) 1540
Answer this question and see the worked solution
Concepts tested
- Bond Amortization
- Bonds
- Book Value
- Face Value
- Coupon
- Coupon Rate
- Term of Bond
- Accumulation of Discount