Immunization ...

CFA Level III
#1

Can anyone post an example of a full immunization problem which includes calculating BEY …

Sharing important ideas about immunization is also appreciated.

#2

Bump…

Can someone explain how did they reach 541.36 , 546.72, and 489.06 on page 37.

thanks

#3

Are you serious?

#4

Hey that’s my username

#5

Sorry copy right violation! Did I violate any ethics?

#6

546.72 = compounded return using the minimum acceptable return set by sponsor

Then do Asset / Liability at new rate :

Asset = 541.36

For 541.36 ,do I/Y=3.75/2 , N=20 , PMT=11.875 ( 500*0.0475/2) , FV=500

CPT PV=541.36.

Liability = ( Required initial value at new rates , PV)

For 489.06 , do I/Y= 3.75/2 , N= 6 , PMT=0 , FV= 546.72

CPT PV= 489.06

#7

Yes I was serious. There’s nothing wrong in asking questions before exam date. Immunization was my weakest area but now everything makes sense to me :slight_smile: thanks