Revision as of 21:59, 19 November 2023 by Admin (Created page with "'''Solution: A''' From the first bond: <math>P=25 a_{\overline{8} 0.03}+C v^8</math> From the second bond: <math>0.93 P=25 a_{\overline{4} \mid 0.03}+C v^4</math> Multiply the first equation by 0.93 and plug into the second equation: <math display = "block"> \begin{aligned} & 0.93(25) a_{\overline{8}|0.03}+0.93 C=25 a_{\overline{4}|0.03}+C v^4 \\ & 163.2078+0.73415 C=92.9275+0.88849 C \\ & 70.2804=0.15434 C \\ & C=455.37 \end{aligned} </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: A
From the first bond: [math]P=25 a_{\overline{8} 0.03}+C v^8[/math] From the second bond: [math]0.93 P=25 a_{\overline{4} \mid 0.03}+C v^4[/math] Multiply the first equation by 0.93 and plug into the second equation:
[[math]]
\begin{aligned}
& 0.93(25) a_{\overline{8}|0.03}+0.93 C=25 a_{\overline{4}|0.03}+C v^4 \\
& 163.2078+0.73415 C=92.9275+0.88849 C \\
& 70.2804=0.15434 C \\
& C=455.37
\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.