SOA Exam FM Sample Question 384
Study guide: Exam FM-2
A 15-year bond with a face amount of 5000, a redemption value of C, and an annual coupon rate of 7% paid quarterly is purchased at a price that yields an annual nominal rate of 5.6% convertible quarterly.
The amount for amortization of premium in the third coupon payment is 6.88.
Calculate C.
- A) 5150
- B) 5165
- C) 5190
- D) 5235
- E) 5275
Answer this question and see the worked solution