SOA Exam FM Sample Question 345
Study guide: Exam FM-2
An n-year bond with an annual coupon rate of r% has the following characteristics:
i) The face amount is 980.
ii) Coupons of 49 are paid semiannually.
iii) The annual nominal yield rate convertible semiannually is (r + 1.8)%.
iv) The purchase price is 915.70.
v) The redemption value is 1000.
Calculate n.
- A) 2
- B) 3
- C) 4
- D) 5
- E) 6
Answer this question and see the worked solution