SOA Exam FM Sample Question 457
Study guide: Exam FM-2
An n-year 100 face amount bond has an annual coupon rate of r paid semiannually. The price of the bond is 91.8243 based on an annual yield rate of 4% compounded semiannually. The book value of the bond immediately after the nth coupon payment is 95.5087.
Calculate n.
- A) 5
- B) 10
- C) 15
- D) 20
- E) 25
Answer this question and see the worked solution