Hi, Am doing Q&A Bank Part 1. For Q.1.16, solution has mentioned that Increase In Yields , will have no change to the dividend if the existing liabilities are well matched by fixed interest. I could not get the logic here (i am dumb). Anyone kind to explain it with a numerical example by refering to its formula? For reference: Dividend = (V0 + P)*(i''-i) + (q-q'')(S-V1) + [E(1+i)-E"(1+i")] where V = Value of contract i" = actual rate of interest i = expected rate of interest S = Sum Assured E", E = Actual and Expected expenses q",q = Actual and Expected mortality Anyone please? Thanks in advance
