SOA Exam FM Sample Question 426
Study guide: Exam FM-2
Company XYZ has a liability of 10,000 due in nine months. To pay this liability, they have an asset portfolio generating cash flows of X in six months and Y in one year. The portfolio is Redington immunized.
The annual effective interest rate is 2%.
Calculate X.
- A) 4926
- B) 4975
- C) 5000
- D) 5025
- E) 5074
Answer this question and see the worked solution