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#1




Problem help
I have a question could I please get some help from the pros.
A liability has a present value of 300,000 at 4.5% effective. The modified duration of the liability at 4.5% is 10. Let X = the present value of the liability at 4% effective using the first order modified approximation. Let Y = the present value of the liability at 4% effective using the first order Macaulay approximation. Determine XY. 
#2




42
There is probably a specific exam forum to ask this question. Not the General Actuarial Forum. If someone knows which one, I can move it there.
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#3




I took a guess that it belongs here. OP can move it again if he’s taking something else.

#4




I don't often help with what looks like homework, but here goes ...
Quote:
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Notice, that below there are no more givens. So, assuming the problem is doable, it can't matter what cashflows you pick, provided that the PV (at 4.5% effective) is 300K and the modified duration at 4.5% is 10. Can you find an especially simple such cashflow? Quote:
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#5




Do you have the study note on duration from the FM syllabus? The necessary formulas are in there. It as a straight plug the numbers in question.

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