Hi,
Ref: Q&A bank, Part 4, solution to question 4.4(ii)
With respect to EV, are the terms PVIF and PVFP not interchangeable?
The notes (CMP, Ch19, p.5) say that they are interchangeable but this question asks for a method to calculate PVFP and the solution awards 2 out of 7 marks for valuation of net assets.
Also, does time-value of options and guarantees not have to be deducted? The solution does not mention this but the core reading does (CMP Ch19, p.11, "Principle 6") and there may e.g. be guaranteed fund values on the UL policies.
Last edited by a moderator: Sep 16, 2017