Done with the exam? Share your Exam 2/FM study notes here! - Page 3

GuineaPig · #1 11-13-2006, 03:27 PM

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

MyKenk · #2 11-21-2006, 11:52 AM

Here are some possibly helpful threads for you:

Theory Question discussion, with some samples:
http://www.actuarialoutpost.com/actu...ad.php?t=91669

Both Kellisons and Brovermans discussion of investment mechanisms:
http://www.actuarialoutpost.com/actu...ad.php?t=95221

Some Challenging practice questions (with some solutions):
http://www.actuarialoutpost.com/actu...ad.php?t=94372

Historical Data on Course 2 Pass Marks:
http://www.actuarialoutpost.com/actu...ad.php?t=93987

Ebony's OOOH WEEEE! Practice Exam Thread:
http://www.actuarialoutpost.com/actu...ad.php?t=93851

My notes on Kellison's Chapter 9 (Immunization, Convexity, Duration):
http://www.actuarialoutpost.com/actu...ad.php?t=93812

Some basic Duration formulas you may want to memorize:
http://www.actuarialoutpost.com/actu...ad.php?t=93723

Good Luck, FMers!

GuineaPig · #3 11-21-2006, 03:16 PM

thanks mykenk you just made my AO rummaging that much easier

tbug · #4 01-01-2007, 07:54 PM

Here are my summary notecards for the eight covered chapters of Broverman's Mathematics of Investment and Credit from the 2006 syllabus for Exam 2/FM. I hope someone finds this helpful!

~tory

howzzat · #5 01-14-2007, 12:47 PM

I have all my written notes (prepared from Kellison's The Theory of Interest, now outdated) scanned into neat little PDF(s). I want to post them, but i was curious if i am violating any copyright laws since the notes follow the text quite closely and i have reproduced about half of his example problems in my notes. Any suggestions?

P.S. If i recall correctly, reprocessing/reproducing about a fifth of a copyright text without the intention of financial profit is permitted. But is its distribution then illegal? Heck, is posting the notes here a form of distribution?

MyKenk · #6 01-14-2007, 12:50 PM

Quote:

Originally Posted by howzzat

I have all my written notes (prepared from Kellison's The Theory of Interest, now outdated) scanned into neat little PDF(s). I want to post them, but i was curious if i am violating any copyright laws since the notes follow the text quite closely and i have reproduced about half of his example problems in my notes. Any suggestions?

P.S. If i recall correctly, reprocessing/reproducing about a fifth of a copyright text without the intention of financial profit is permitted. But is its distribution then illegal? Heck, is posting the notes here a form of distribution?

Well, my notes that I previously posted follow the text very closely as well. If you're uncomfortable with posting them, or are wary of possible legal problems, then don't post them, no one will hold it against you.

beck · #7 01-21-2007, 02:19 PM

thanks... EVERYONE

JavaGeek · #8 05-21-2007, 01:22 AM

This seems to be a great place for a short little helpful tidbit:

For Duration or Increasing annuities..., sometimes $a_{\overline{n|}$ is a lot easier to calculate (with a calculator for instance) than $Ia_{\overline{n|}$

$Ia_{\overline{n|}i} = (1+i)\frac{d}{di}P = (1+i)\frac{a_{\overline{n|}i+h}+(-1)a_{\overline{n|}i-h}}{2h}$

Note: the approximation is probably a faster way of calculating duration of a bond. Just punch in the initial values into the calculator (PMT, FV, I, N) and solve for PV with I, I+1, I-1 and then apply the above equation:
$Macaulay Duration = (1+i)\frac{\frac{d}{di}P}{P} = (1+i)\frac{a_{\overline{n|}i+h}+(-1)a_{\overline{n|}i-h}}{2ha_{\overline{n|}i}}$

eg. 30 year 80-coupon bond @ 6% yield:
$PV_{6%} = 1275.296623$
$PV_{5%} = 1461.173531$
$PV_{7%} = 1124.090412$
$(1.06)\frac{1461-1124}{0.02*1275} = 14.00$ (exact = 13.89)

If you have to solve for n or i this probably wont be useful...

And if you're interested:my notes from Mathematics of Investment and Credit

OskeeChet · #9 11-13-2007, 08:59 AM

I used these to help me see all the different spreads that might show up on the exam. It just helped me visualize and understand how the strategies were created.

Ely · #10 06-10-2008, 10:59 PM

Quote:

Originally Posted by OskeeChet

I used these to help me see all the different spreads that might show up on the exam. It just helped me visualize and understand how the strategies were created.

I can not read the notes. Any suggestion? Thanks

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