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Financial Mathematics Old FM Forum 

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#11




Quote:
It is a Course 6 question also. But I will take my chances, and double check with the longer method also if there is a convexity calc.
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#12




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I tried this problem a few days ago using the formula above (with my fancy BAII Plus Pro). I did not get the correct answer by SOA. In fact I just tried again a few minutes ago. And it did not work again. Here are the #s I used for the BAI Plus: t = 1,2,3,4,5,6 CF = 3,3,3,3,3,103 t*CF = 3,6,9,12,15,618 t^2*CF = 3,12,27,48,75,3708 i (effective rate per coupon period) = 3.92304845 Bond Price = 95.14910832 Sigma tCF(t)v^t = 529.7120714 MacD = 2.78358 Sigma t^2CF(t)v^t = 3,084.609437 MacC = 8.1046 r = 8% Convexity=9.335. This is not the SOA's answer, but it is close to one of the possible answers Krzysio showed. In fact, the only difference is the rate I used in the last step. Last edited by hokensuri; 10292006 at 12:36 AM.. 
#13




Does anyone know a good way to save no driver's post? For some reason in wordpad the gifs won't copy unless you do them 1 at a time...
Last edited by GuineaPig; 11102006 at 01:39 AM.. 
#14




nevermind I just printed out a hard copy. Thanks no driver mykenk and buzz.

#16




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#17




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http://www.actuarialoutpost.com/actu...80&postcount=4 Unless someone shows me how to make a proper annuity symbol angle in LaTeX or points out a serious error this will probably be the last revision. Enjoy! 
#18




I wasn't able to distill FM into 5 equations, as mykenk did. I ended up making a little quiz sheet that I went over every few days after I got tired of studying. Now that the test is over, I put it into Word (using MS Equation). I'm attaching the version without answers here. I'll post the version with answers next.

#19




And here is the version with the answers

#20




thanks vjvj thats a nifty little quiz. *you really are obligated to use the word "nifty" whenever possible.

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