• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

September 2004 Paper 1 Qu.2(v)

A

ActEdStudent

Member
Would a change in interest rates not also affect the market value of some of the assets and therefore potentially affect solvency? Thanks.
 
Yes...

Perhaps the question is pre- "assets at market value" statutory rules?
 
Sorry, I meant question 1(a) of that paper, don't know where the 2(v) came from!
 
ActEdStudent said:
Would a change in interest rates not also affect the market value of some of the assets and therefore potentially affect solvency? Thanks.
Click to expand...

As the solution says, depends on the purpose of the valuation. Asset valuation rules aren't in the course any more, but generally speaking they are valued at market value for statutory purposes. It is certainly possible that a change in interest rate might change the market value of some assets and not others.
 
You must log in or register to reply here.
Back
Top