

FlashChat  Actuarial Discussion  Preliminary Exams  CAS/SOA Exams  Cyberchat  Around the World  Suggestions 

Financial Mathematics Old FM Forum 

Thread Tools  Search this Thread  Display Modes 

#3




Exercise for March 11, 2006
It is posted at:
http://www.math.ilstu.edu/krzysio/KOFMExercise43.pdf Yours, Krzys' Ostaszewski P.S. By the way, the number in URL does imply that there are exercises with lower numbers are there, too. 
#7




http://en.wikipedia.org/wiki/M_squared
I hope not Seriously though, I don't recall seeing this in ASM or the 2 textbooks... so I'm guessing it's not on the exam. That, and it is an old exam 8 question, so... However, if, in the problem, they gave us that M^2=CD^2, I would think that this would be an acceptable exam problem, all the components are on the syllabus. 
#9




Here's a little chart of the spot rates. Notice that you're going to be using the last diagonal:
Code:
nyear spot rate m years from now: n m=0 m=1 m=2 m=3 m=4       1 7.00 6.75 6.50 6.25 6.00 2 8.00 7.75 7.50 7.25 3 8.75 8.50 8.25 4 9.25 9.00 5 9.50 Code:
Time Yrs Rate of to to Acc. Pymt Acc. Acc. Factor     0 5 1.0950 1.574239 1 4 1.0900 1.411582 2 3 1.0825 1.268480 3 2 1.0725 1.150256 4 1 1.0600 1.060000  6.464557 To correct the solution, if I'm right, change "a year from now" to "today", and everything else should be perfect. 
#10




Nice spreadsheet. Thanks!

Thread Tools  Search this Thread 
Display Modes  

