Revision as of 10:02, 22 November 2023 by Admin (Created page with "Stacia buys a 5 year bond with coupons at 6% convertible monthly which will be redeemed at $1,500. She buys the bond to yield 9% convertible monthly. The purchase price is $1,100. Calculate the par value <ul class="mw-excansopts"><li>$2,916.84</li><li>$1,060.67</li><li>$2,114.52</li><li>$376.40</li><li>$23.04</li></ul> {{cite web |url=https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1008&context=statsp |last=Hardiek |first=Aaron |date=June 2010 |website...")
ABy Admin
Nov 22'23
Exercise
Stacia buys a 5 year bond with coupons at 6% convertible monthly which will be redeemed at $1,500. She buys the bond to yield 9% convertible monthly. The purchase price is $1,100.
Calculate the par value
- $2,916.84
- $1,060.67
- $2,114.52
- $376.40
- $23.04
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
ABy Admin
Nov 22'23
Solution: D
P = 1100, i = .0075, r = .005, C = 1500
[[math]]
\begin{aligned} & 1100=1500 \mathrm{v}^{60}+\mathrm{F}(.005) \mathrm{a}_{\overline{60}|.0075} \\ & 141.95=\mathrm{F}(.005) \mathrm{a}_{\overline{60}|.0075} \\ & \mathrm{~F}=376.40\end{aligned}
[[/math]]
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.