Revision as of 17:54, 19 November 2023 by Admin (Created page with "'''Solution: E.''' Using spot rates, the value of the bond is: 60 /1.07 + 60 /1.08<sup>2</sup> + 1060 /1.09<sup>3</sup> = 926.03. Using a calculator, the solution is 8.9%. {{soacopyright | 2023 }}")
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Exercise

ABy Admin
Nov 19'23

Answer

Solution: E.

Using spot rates, the value of the bond is:

60 /1.07 + 60 /1.082 + 1060 /1.093 = 926.03.

Using a calculator, the solution is 8.9%.

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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