Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #11
1. For any interest rate i, what is the modified convexity of a
i ? (I.e.,
what is the equation as a function of i for the modified convexity?).
P(i) = 1/d = (1 + i) / i = 1 +
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #3
1. Lisa will begin college in 15 years and will have to pay $27,000 at the
beginning of each of her four years in college. Her parents start
saving money for college by investing
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #9
1. A coupon bond redeemable at its par value of $1,000 pays 20 semiannual coupons, and is priced to yield 5.5% effective semiannually.
When the 5th coupon is paid, the change in
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #8
1. For a sinking fund loan, the total periodic commitment is the service
payment plus the contribution to the sinking fund. Consider an nperiod sinking fund loan for which payment
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #7
1. The data table below represents a year of a retirement fund.
Date
January 1
April 1
July 1
October 1
December 31
Cash Flow
3,400,000
1,700,000
2,800,000

Fund value just aft
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #4
1. A computer company charges itself a depreciation expense for a
piece of equipment at the beginning of each year for 25 years,
starting today. It accumulates these charges at an
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #6
1. Tommy makes monthly deposits into Fund A at the beginning of each
month for 20 years. His first deposit is $25, and each subsequent
deposit increases by $25. Timmy contributes
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #5
1. A perpetuity has a payment stream of pt = 6t + 3 for t > 0 at an
annual effective interest rate of r. Another perpetuity pays $50
continuously for the first year, $55 continuou
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #10
1. 1. A $10,000 par value bond with semiannual coupons of 8%
convertible semiannually is redeemable in 30 years at par. It is
callable on any coupon payment date at a call price
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #2
1. At time 0, Heather invests $680 into Fund A that pays a varying force
of interest of 0.05t until the end of the third year; after that it pays an
annual effective discount rate
Actuarial Science 301
Wisconsin School of Business
Homework Problems Set #1
1. Kayla invests $5700 into a savings account at the beginning of 2015.
At the end of 2019, the account balance has grown to $X. The annual
effective interest rate is 3.16% for th
Section 6.2 Bonds
Bonds interest paid generally semiannually
entire principal paid back at maturity
Yield to Maturity and Coupon rate QUOTED as nominal convertible with frequency of
coupon payment
Convention is that bonds are semiannual coupons
F face
1 Fall 2009 Actuarial Science 303 Exam 1
,) (15 points) You save for retirement starting on your 40th birthday by depositing
$3, 000 into an individual retirement account. You deposit $3, 000 each birthday until
your last deposit on your 65th birthday
AS 303
Spring 2013 Exam #1
February 26, 2013 5:30 PM

Name: Moin Slit ,Wl
StudentIDNumber(e.g.90#): 010% 0H5 0356
INSTRUCTIONS
DO NOT TURN OVER THIS PAGE UNTIL YOU ARE TOLD THAT YOU MAY
BEGIN THE EXAM.
You are not permitted to use notes or books
1. (12 points  3 points each) Calculate the present value today of a payment 8 1/2 years
from today of $15,000 assuming:
a) ilz) = 5%
b) 5;: [.06  .001t] for all times = t
0) Simple rate of interest = 3% 
(:1) Quarterly effective rate of discount = 1.5
Spring 2011 Actuarial Science 303 Exam 1
1.) Start each question with a new sheet of paper 2.) Show work for partial credit
3.) Name on each sheet of paper 4.) Staple Exam to back of answers when done
l. (14 points) You have accumulated $20,000 at the e
Mr 71%.
Spring 2012 Actuarial Science 303 Exam 1 a.
1. (12 points) You have accumulated $12,000 at the end of 15 years from a single cash ow at 41%
time 0. Given that the following rates applied over these times, how much money did you invest
g 12/ years
Fall 2010 Actuarial Science 303 Exam 1
Instructions:
1.) Start each question with a new sheet of paper
. 2.) Show work for partial credit '
3.) Name on each sheet of paper
4.) Staple Exam to back of answers when done
(15 points) You have accumulated $20,
Exam 1 Question
4
(b)
You have won the lottery and three different options have been offered to you as payment for
winnings. At an annual effective rate of interest of 5%, what is the present value of each set of
cash flows?
A 20 year annuity due with ann
ACT SCI 652 Computer Exercise #2
Please first review the file ComputerAssignmentGuidelinesAS652.pdf on the course web.
1. Consider the mixture of two gamma densities. Each gamma distribution will have two
parameters. Moreover, there is an additional param
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ACT SCI 650: Actuarial Mathematics I
Homework #5: Fall 2015
Assigned October 7, due October 14 at 10:30am
Maximum points that can be earned = 6
There is a new section on the course website entitled Introduction to
Simulation. Read the le entitled Introduc
ACT SCI 650: Actuarial Mathematics I
Homework #2: Fall 2015
Assigned September 9, due September 16 at 10:30am
Maximum points that can be earned = 6
AMLCR stands for the textbook Actuarial Mathematics for Life Contingent Risks. Supplement stands for SOA Ex
ACT SCI 650: Actuarial Mathematics I
Homework #4: Fall 2015
Assigned September 23, due September 30 at 10:30am
Maximum points that can be earned = 6
AMLCR stands for the textbook Actuarial Mathematics for Life Contingent Risks. Supplement stands for SOA E
ACT SCI 650: Actuarial Mathematics I
Homework #3: Fall 2015
Assigned September 16, due September 23 at 10:30am
Maximum points that can be earned = 6
AMLCR stands for the textbook Actuarial Mathematics for Life Contingent Risks. Supplement stands for SOA E
ACT SCI 650: Actuarial Mathematics I
Homework #6: Fall 2015
Assigned October 14, due October 21 at 10:30am
Maximum points that can be earned = 6
AMLCR stands for the textbook Actuarial Mathematics for Life Contingent Risks. Supplement stands for SOA Exam