Q13

exam6againexam6again
in CAS Sample IFRS 17 Questions

Using the same discount curve at the beginning and end of the period, why isn't this?

Comments

  • exam6againexam6again

    what is this calculating?

  • Staff-T1Staff-T1
    1. That's not the same discount curve. The first discount curve has 4% discount at the first period. You are choosing 4.2% as the discount during your first period for time 2. Basically using the same discount curve means at time 2, you use the same discount curve as at time 1, and now assume that time 2 is time 1.
    2. That is calculating the cash flows at time 2.5 using one period spot rates
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