Revision as of 22:47, 19 November 2023 by Admin (Created page with "'''Solution: C''' The minimum yield will occur at the earliest redemption date since the bond is brought at a premium. Therefore <math>\mathrm{n}=18</math>. <math display="block"> \begin{aligned} & 1321=111.10 a_{\overline{18} \mid i}+1111 v^{18} \\ & i=0.07985 \end{aligned} </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: C
The minimum yield will occur at the earliest redemption date since the bond is brought at a premium. Therefore [math]\mathrm{n}=18[/math].
[[math]]
\begin{aligned}
& 1321=111.10 a_{\overline{18} \mid i}+1111 v^{18} \\
& i=0.07985
\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.