SOA Exam FM Sample Question 431
Study guide: Exam FM-2
A ten-year 1000 face amount bond has an annual coupon rate of 6% paid semiannually. The bond is purchased at a premium, to yield an annual effective interest rate of 5%.
Calculate the amount of the amortization of premium in the 12th coupon.
- A) 3.85
- B) 3.95
- C) 4.00
- D) 4.10
- E) 4.26
Answer this question and see the worked solution