How do you think was today's CT1 exam ? I found it tough . Any chance of pass marks being a bit low? I mean around 50-55 ( instead of say 60 odd). I also think second question was not correct (though I may be wrong). I think the discounted value should have been inside an 'exp' bracket.
I found it quite hard as well. I was slightly disappointed that many fundamental topics such as Loan Schedules, Stochastic Interest Rates and Redington's Condition did not come up. Personally, I could not understand why 26 marks should have been concentrated in one whole question. Of course if I fail I only have myself to blame.
In question 12 I forgot to take into account the CGT while calculating the risk free rate of return on Government Bonds. Will I get any marks for the rest of the calculations?
If it's marked similar to the IFoA then you have solved a simpler question - so you will get reduced marks.
In question 10, (ii) part, the question states to determine the size of the issue of the two zero coupon bonds issued by the bank. Were we required to calculate the loan amounts given to the customers of the bank such that the profolio is immunized? I had also discounted the bond values to arrive at the issue price of the bonds.
I think there is another error here. The question asks for the size of the bonds - which we are told in the question. I think it was referring to the size of the loans lent to customers....
Thanks for replying. Even I thought the same thing and so I also calculated the the size of the loans lent to the customers.
Hi John, is such an error overlooked? If a student started the Q, but did not do it since he/she couldn't spot the error in the Q, he/she won't be compensated in any way? There is no mention of this error in your exam review as well.
Apologies Jay. I forgot about this when I did the review and I don't know what the examiners will do.
