SOA/FM SAMPLE QUESTION #133

133.
An insurance company wants to match liabilities of 25,000 payable in one year and 20,000 payable in two years with specific assets. The following assets are currently available:
i) One-year bond with an annual coupon of 6.75% at par
ii) Two-year bond with annual coupons of 4.50% at par
iii) Two-year zero-coupon bond yielding 5.00% annual effective
Calculate the smallest amount the company needs to disburse today to purchase assets that will exactly match these liabilities.
(A) 41,220
(B) 41,390
(C) 41,560
(D) 41,660
(E) 41,750