SOA Exam FM Sample Question 372
Study guide: Exam FM-2
A five-year 1000 face amount bond with 10% annual coupons is purchased at time of issue for 1216.47 based on an annual effective interest rate of 5%.
Calculate the Macaulay duration.
- A) 2.9
- B) 3.2
- C) 3.7
- D) 4.1
- E) 4.3
Answer this question and see the worked solution