SOA Exam FM Sample Question 444
Study guide: Exam FM-2
Bond X, Bond Y, and Bond Z are each n-year bonds with face amount 1000. All three bonds are priced to yield a nominal annual interest rate of 6.5% convertible semiannually.
Bond X provides annual coupons of R, Bond Y provides quarterly coupons of 20.00, and Bond Z provides semiannual coupons of 32.50.
The price of Bond Y exceeds the price of Bond X by 401.50 and the price of Bond Y exceeds the price of Bond Z by 169.30.
Calculate R.
- A) 41.79
- B) 42.03
- C) 43.78
- D) 44.25
- E) 45.52
Answer this question and see the worked solution