FM for Actuaries

Answers to Selected Exercises 343
6.17 $7.4785 discount
6.18 3.6%
6.19 (a) At maturity (b) At the end of the 6th year
6.20 P (1 + i) t − t(Fr)
6.21 Book value B 3 = $102.0129, other results follow
6.22 $1.2578 write-up
6.24 $1,045
6.26 $102.1220
6.27 $36.67
6.28 $3.83 discount
6.29 (a) $99.9399 (b) $104.2941
6.30 (a) At issue: $107.1062, after 7 months: $94.3933 (b) 16.3%
6.32 $1,610.50
Chapter 7
7.1 (a) 8.52% convertible semiannually (b) 7.41% convertible semiannually
(c) $1,036.51
7.2 $1,053.89, 8.30% convertible semiannually
7.3 11.12% convertible semiannually
7.4 (a) 7.40% convertible semiannually (b) $1,067
7.5 (a) 9.746% (b) 9.833% (c) 9.654%; all compounded semiannually
7.6 3.962%
7.7 (a) exp(0.03t) for t ≤ 5 and exp[0.06 + 0.0025(1 + t) 2 ] for t>5
(b) $135.9413 (c) 3.142% compounded semiannually
7.8 4.44%
7.11 7.3678%