Kindly provide me the Institute of Actuaries of India-Subject ST6- Finance and Investment B Exam Previous Year’s Question Paper……….

As per your request here I am sharing the Institute of Actuaries of India-Subject ST6- Finance and Investment B Exam Previous Year’s Question Paper:

a) Suppose that an investor buys today (at time t = 0) three-year maturity zero coupon
bonds with face value of Rs. 10 million. How many five year maturity zeros would
you have to sell to make your initial cash flow equal to zero at time t = 0?

(b) What are the cash flows on this strategy in each year?

(c) What is the effective two-year interest rate on the effective three-year-ahead forward
loan of principal value of Rs. 10 million?