SOA Exam FM Sample Question 437
Study guide: Exam FM-2
Kelly purchases a 25-year annual coupon bond for 20,000 with an annual effective yield rate of i. The amount for the accumulation of discount in the first coupon is 50.
The bond's book value is 20,491.51 just after the 8th coupon payment and 21,263.74 just after the 16th coupon payment.
Calculate the bond's redemption value.
- A) 22,135
- B) 22,170
- C) 22,234
- D) 22,671
- E) 23,660
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