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Please do not use excel 2. (Source: ACTEX SOA EXAM FM STUDY MANUAL, Practice Exam One) Robin Banks purchases a 10-year 1000 par value bond

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Please do not use excel

2. (Source: ACTEX SOA EXAM FM STUDY MANUAL, Practice Exam One) Robin Banks purchases a 10-year 1000 par value bond that pays semi-annual coupons at an 8% annual rate. The bond is priced to yield 7.5% convertible semi-annually. Robin Reinvests the coupon payments in a fund that pays a nominal rate of 7% convertible semi-annually. Over the 10 -year period, what is Robin's nominal annual yield convertible semi-annually? A) 7.36% B) 7.41% C) 7.48% D) 7.56% E) 7.63%

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