Immunization Question.

When doing calculations for excess capital, etc. in connection with immunization strategies - do you always assume semiannual compounding? It seems this way from every practice problem I have done but wasn’t sure why or if this actually was uniformly the case.

Thanks in advance!

I think so. Have been caught by the same thing. My guess is that you use semi-annual in the calcs to match the bond math.

if youre using US bonds use semi annual, if another country is given i am sure the frequency will be given