Exercise
ABy Admin
Nov 19'23
Answer
Solution: B
[[math]]
BV_{12} = 38a_{\overline{8}|0.03} 1000v^8 = 1056.16.
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
A 1000 par value ten-year bond with 7.6% semiannual coupons is bought to yield 6.0% convertible semiannually.
Calculate the book value of the bond at the end of year six immediately after the coupon payment.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
Solution: B
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.