Do we have to remember the formula for bond price under Vasicek model? I know the formula book has given one, but this one has different expression to CMP, Eg the L used in formula book does not give detailed definition at all.
Ok, thanks Mark. In addition, the core reading has given the price formula for zero coupon bond under CIR model as well. it is not given in exam formula book and it's quite complex, do you think we need to memorise it too?
The corresponding formula for the price of a zero-coupon bond under CIR is also in Core Reading. As with any actuarial exam, anything in Core Reading could appear on the exam. The formula for the price of a zero-coupon bond under CIR has never been examined in the past. I can't really say much more than that - what you learn is up to you, after all - but this wouldn't be the first formula I memorised to prepare for the CT8 exam
