Verified solution · Exam FM
This Exam FM sample reference tests Coupon Bond Anchored by a Zero Price. The zero price fixes the n-period discount factor at 0.60. Coupons at half the yield contribute one-half of the discounted interest margin. The second price is therefore 0.80F, so F = 750 and choice B.
Independent solution
Setup
Normalize the zero-coupon price by face value.
Model
Let F be the second face value. Its coupon is Fi/2.
Compute
Use i times a-angle-n equal to one minus v to the n.
Answer
The second face value is 750, choice B.
Continue without hunting through PDFs
The searchable 2210-page manual includes this complete solution, its error analysis, and one original worked variant for every active reference.
Error diagnosis
These notes identify the calculation error associated with each wrong letter when that error is reproducible.
Original practice · fully worked
A 1,000 face-value zero-coupon bond sells for 700. A second bond has the same maturity and yield, a face value of 875, and the same 700 price. Its annual coupon rate is alpha times the yield. Determine alpha.
The maturity discount is 0.70. The second price equation is 700 = 875[0.70 + alpha(0.30)], giving alpha = one-third, choice C.
Setup
The zero price fixes the common maturity discount factor.
Model
Price the second bond using coupon alpha times 875i.
Compute
Insert the known discount and solve.
Answer
The coupon rate is 33.3% of yield, choice C.
Keep practicing
These references share syllabus concepts or sit nearby in the official sequence. All 96 Exam FM bonds practice problems.
Continue in syllabus order
The 2210-page Financial Mathematics Proof Manual reorganizes 461 verified Exam FM solutions by syllabus skill and adds formula proofs, error patterns, and original worked practice.
ActuaryProof. “SOA Exam FM Sample Question #335 — Verified Solution.” Verified 2026-07-31.
Source reference: official SOA sample-question PDF. Last reviewed 2026-07-31.
