CT1 IFoA April 2005 Question 1

Discussion in 'CT1' started by Sunil Sanga, Apr 7, 2016.

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  1. Sunil Sanga

    Sunil Sanga Member

    Interest rate is given ....The countinously compounded risk free rate of interest for term 6 months and One year.


    Is it the other name of force of interest?

    Countinously compounded interest.... Since in solution it is taken in Delta (force of interest term) ??
     
    Sunil Sanga, Apr 7, 2016
    #1
  2. Mark Mitchell

    Mark Mitchell Member

    Yes - the continuously-compounded risk-free rate is another name for the risk-free force.
     
    Mark Mitchell, Apr 7, 2016
    #2
  3. Sunil Sanga

    Sunil Sanga Member

    Thanks for confirmation !!
     
    Sunil Sanga, Apr 7, 2016
    #3

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