Hi everyone, currently I'm having problems in X3.8 Part ii) understanding of it and X3.12 profit signature part, the last row under claim cost , 61.42. Does anyone know where that figure is coming from ?? I Don't even have a clue on that!!! Anyone who could help me on this part would be much appreciated! Thanks!!
3.8.ii) The first integral is the probability that when x dies, y is already dead at least 5 years ago. We're only looking up to t=5 to 15 here, so don't have to worry about y dying more then 15 years ago yet. At t<5, it is 0 because y has to have died at least 5 years befoe. In the second integral, we're looking at the probability that when x dies, y was already dead 5 years ago but not 15 years ago. 3.12) I have a little note in my working out when i did that q that 61.42 is equal to (1-q(62) )* 0.02 * 3102.32. So it looks like it's meant to be that "In addition, a bonus of 2% of the (bid) vlue of the unit fund is payable at maturity." Lucky for that little note
