SOA Exam FM Sample Question 326
Study guide: Exam FM-2
A 20-year bond with 8% annual coupons is purchased at a price of P. The face amount of the bond is F. The price assumes an annual effective yield rate of 4%.
The change in book value of the bond during the 8th year is equal to 43.24.
Calculate P.
- A) 2315
- B) 2470
- C) 2625
- D) 2780
- E) 3085
Answer this question and see the worked solution
Concepts tested
- Bond Amortization
- Bonds
- Book Value
- Face Value
- Coupon
- Coupon Rate
- Term of Bond
- Amortization of Premium