SOA Exam FM Sample Question 434
Study guide: Exam FM-2
You are given the following information about two 30-year 1000 face amount bonds, A and B, each yielding an annual nominal interest rate of i\% convertible semiannually.
- i) Bond A has an annual coupon rate of 9% paid semiannually and has a price of 1249.45.
- ii) Bond B has an annual coupon rate of 8% for the first 15 years and 10% for the last 15 years, all paid semiannually.
Calculate the price of Bond B.
- A) 1150
- B) 1160
- C) 1170
- D) 1180
- E) 1190
Answer this question and see the worked solution