Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Financial Mathematics
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

2017 ACTUARIAL SALARY SURVEYS
Contact DW Simpson for a Personalized Salary Survey

Financial Mathematics Old FM Forum

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 03-01-2006, 10:44 PM
Tom's Avatar
Tom Tom is offline
Actuarial Outpost Administrator
Contact me: Send me a PM
or email me
tom.troceen@dwsimpson.com
CAS SOA COPA
 
Join Date: Jan 1987
Location: Sitting in front of a red button w/ your name on it
College: FSU ActSci Alumni
Favorite beer: Root
Posts: 11,534
Blog Entries: 7
Default Krzysio's Weekly Practice Problems for FM/2

Krzysio, I give you the floor. . . .
__________________
Questions? Contact me at tom@actuarialoutpost.com or send me a PM here.
Reply With Quote
  #2  
Old 03-05-2006, 08:55 PM
krzysio's Avatar
krzysio krzysio is offline
Member
SOA AAA
 
Join Date: Mar 2005
Location: Bloomington, Illinois
Favorite beer: Tyskie
Posts: 1,310
Default Exercise for March 4, 2006

It is posted at:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise42.pdf

Yours,
Krzys' Ostaszewski
__________________
Want to know how to pass actuarial exams? Go to:
http://smartURL.it/pass
Reply With Quote
  #3  
Old 03-09-2006, 11:45 PM
krzysio's Avatar
krzysio krzysio is offline
Member
SOA AAA
 
Join Date: Mar 2005
Location: Bloomington, Illinois
Favorite beer: Tyskie
Posts: 1,310
Default Exercise for March 11, 2006

It is posted at:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise43.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.
__________________
Want to know how to pass actuarial exams? Go to:
http://smartURL.it/pass
Reply With Quote
  #4  
Old 03-18-2006, 01:51 AM
krzysio's Avatar
krzysio krzysio is offline
Member
SOA AAA
 
Join Date: Mar 2005
Location: Bloomington, Illinois
Favorite beer: Tyskie
Posts: 1,310
Default Exercise for March 18, 2006

It is posted at:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise44.pdf

Yours,
Krzys' Ostaszewski
__________________
Want to know how to pass actuarial exams? Go to:
http://smartURL.it/pass
Reply With Quote
  #5  
Old 03-26-2006, 03:43 PM
krzysio's Avatar
krzysio krzysio is offline
Member
SOA AAA
 
Join Date: Mar 2005
Location: Bloomington, Illinois
Favorite beer: Tyskie
Posts: 1,310
Default Exercise 45 for March 25, 2006

It is posted at:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise45.pdf

Yours,
Krzys' Ostaszewski
__________________
Want to know how to pass actuarial exams? Go to:
http://smartURL.it/pass
Reply With Quote
  #6  
Old 04-01-2006, 08:35 PM
krzysio's Avatar
krzysio krzysio is offline
Member
SOA AAA
 
Join Date: Mar 2005
Location: Bloomington, Illinois
Favorite beer: Tyskie
Posts: 1,310
Default Exercise 46 for April 1, 2006

It is posted at:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise46.pdf

Yours,
Krzys' Ostaszewski
__________________
Want to know how to pass actuarial exams? Go to:
http://smartURL.it/pass
Reply With Quote
  #7  
Old 09-06-2006, 04:37 PM
MyKenk's Avatar
MyKenk MyKenk is offline
Note Contributor
CAS AAA
 
Join Date: Nov 2005
Location: twitter.com/mykenk
College: Drake '06
Posts: 8,595
Default

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=C-D^2, I would think that this would be an acceptable exam problem, all the components are on the syllabus.
Reply With Quote
  #8  
Old 10-16-2006, 10:48 AM
MyKenk's Avatar
MyKenk MyKenk is offline
Note Contributor
CAS AAA
 
Join Date: Nov 2005
Location: twitter.com/mykenk
College: Drake '06
Posts: 8,595
Default

well, I have no idea what the question is, but... are the redemption values equal? the Premium Early, Discount Late rule only is guaranteed with equal redemption values...
__________________
Reply With Quote
  #9  
Old 11-03-2006, 03:32 PM
MyKenk's Avatar
MyKenk MyKenk is offline
Note Contributor
CAS AAA
 
Join Date: Nov 2005
Location: twitter.com/mykenk
College: Drake '06
Posts: 8,595
Default

Here's a little chart of the spot rates. Notice that you're going to be using the last diagonal:

Code:
n-year 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
Now:
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
This assumes the typo is in the solution (first line, the first payment should be invested at the five year spot rate today, not a year from now, as a year from now the 5 year spot rate would be 9.25, and you'd only accumulate 4 years).

To correct the solution, if I'm right, change "a year from now" to "today", and everything else should be perfect.
Reply With Quote
  #10  
Old 11-03-2006, 06:08 PM
hokensuri hokensuri is offline
Member
 
Join Date: May 2006
Posts: 106
Thumbs up

Nice spreadsheet. Thanks!
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 08:25 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.65604 seconds with 9 queries