Homework Policy

Do homework in groups (2-4 students per group), and submit homework in groups. Have a native English speaker
in each group.
o Working in groups will help you get comfortable talking the actuarial language.
o For each problem, write what you learned from the problem.

Show all work. A graph, picture, or timeline is required for each problem with all variables identified, unless there
is nothing to graph or draw. Bump interest rates/yields/coupons in homework by 1%, unless noted otherwise.

Each person in a group has to sign and submit (if true) the following statement: Our group consist of the
following individuals: (list name of group members). We met and understand all the homework. If you do not
understand something, please note what you do not understand.

Staple homework separately. Put all Excel homework on one spreadsheet.

Keep a copy of all homework before turning in, as we may discuss it. Your synopses will be needed for studying.

Do you own synopsis. Synopses will be graded on whether important items (ideas, graphs, general reasoning of
formulas, etc) from book and class lecture are in the synopsis.

Turn in the homework when due; otherwise you will get a zero. Minus 1 if no signed statement. Minus 1 if no
group.
o If you cannot make it to class, give your homework to a student in your group to turn it in.

Four random homework questions in each submission will be graded.
o 3 points per question: 1 off for each new major error; off for each new minor error
o Minimum or 1 point for an answer that shows knowledgeable effort
o No points if the answer looks exactly like that copied from another source

o
Date Chapter Section RMIN 4100 Homework due at beginning of next weeks Tuesday class
Read before class Read syllabus, get books & SOA calculator
1/8 1 1 1-5,10(12%24%&30002000),11&13(no bump)
1.2.2,3(2829),4,10(4050),12,13,15,18(a);Graph 1.1.13 (simple & compound interest)&14
1/13 2,3
and send by email. Use a very high interest rate and zoom in, to see that SI>CI for t<1
1.4.1-4(2X3X),5(only bump up 3.25%),7,10a(& explain result);1.5.1-3,5,7,8a Graph PV using
3
1/15 4,5 simple & compound interest (in NE quadrant). Solve for i in 1000 (1+i) 100 (1+i) =1000 using
the Excel solver
1.6.1 (bump up by .01 for all t),5 (bump up ),10(use triple);1.7.15; short synopsis of Ch1:
1/20 6,7 include important points/formulas from lectures & book Graph FVs & PVs using simple &
compound discounting.
(12) (365)
Calculate in Excel: v, d, a(2), d , i , & for variable i. Also, calculate i for variable . Set
1/22 Exam
them both at .06
1/27 2 1 On same spd, calculate/graph an, n snfor n = 1,90, & using variable i (Excel)
1/29 1 3,7,14,16,17,19(3X2X),20-23,25,&GR(general reason) 27 & 33 with time line & words
2/3 2 2,3,6,11,14(1011),15b&c,27 Add to graph an& n with variable upper m (9999 = )
1,3,5,18,20a (bump both 1%) skip b,GR23 with time line,24,25,27,31,34,GR35,36 in Excel, solve
2/5 3
for i in $20 = s10i
2/10 4.1,4,5 1(a), 3, 6 & Short synopsis of Chapter 2
2/12 Exam
2/19 3 1 1,2,4i(only bump 6%),5,8,11.Graph OBt of 30-yr level paymt loan for variable i & loan amount
2-3 2.1,2 (no bump),4,15,22,GR 33&35; 3.1a, 4, 6; Ch 3 synopsis, Bring to next class: Corporate
2/24
skip 4 Bond rates by Credit rating or by company (with ratings)
1,4(why way more years),8,9a&b(reprice after bump),10,15,17(& calc full price), 26, 27; Do
2/26 4 1
Example 4.3 after bumping up 8% & 6%. Iteration in Excel is needed for (c)(i) &(ii)
3/3 2 & 3.1 2.1-5 (do #3 for variable j% & n), 6a&b, 3.1(bump r too),2,3(897900),4a&b(i) & synopsis
Type up a page on your future actuarial journey: which VEE courses & when, exam plans,
3/5 Exam
where youd like to intern, which practice areas & where youd like to work, etc.
1-3 (skip 1.1a,2,4(-5-5.1 & use calculators cash flow fcn), GR6, 2.1(Ben=200K), 2(1211),
3/17 5
5.1.4 & 5.3.2) 5(1.01.1), 3.1(Ben=50M), Ch 5 Synop, Bring Treasury Yield curve to next class
1.1,2,3a&b,4a(bump up r),5, read 6 & solution; 3.3(95.495.3),5,6,GR7&8; Ch 6 Synop; Graph 6.3.2a Spot,
3/19 6 1, 2, 3, 4.5 Forward, & At-Par Yield curves (see Ex 6.9 p. 341) & extend (ii) to 30 yrs with s(k)=10%, k>10; animate
Yield Curve, print a time period with inverted yield curve (often at beginning of recessions) & submit with HW
3/24 7 1 1, 2(bump r too), 3 (graph duration as a fcn of each of r, j, & n), 6, 7, 12, GR 10/13/14/15
1,5a&b(i),7,12(revise sums due to bump up), GR13 & Synop; Bring in Stock P/E ratios for next
3/26 2
class
3/31 8 1, 3.1, 4 1.1, 1.2, 4.1 Short Synopsis
4/2 Exam Estimate your projected wages/savings up to retirement (give assumptions) and how much you
 need to save each year. Type 1-pager on your retirement projection. Bring in Options prices
4/7 McD 1 All Do odd problems, read even problems & solutions, & do Ch 1 synopsis (skip 11.13 and 11.14)
4/9 McD 2 All Do odd problems, read even problems and solution & do Ch 2 synopsis
Do odd thru #9 (& tough problem - bump up g), read even problems/solutions, graph #7 in Excel
4/14 McD 3 1-2
- each piece & in total on 1 graph. Write what you learned from problem/graph near graph
4/16 McD 3 All Do odds thru #19, read even problems & solutions, and do synopsis for Ch 3
4/21 McD 4 1-4 Do odds thru #17, read even problems & solutions thru 20, & do synopsis for Ch 4
4/23 McD 5 5.1-4,B Do Ch 5 odds thru 9, read evens thru 10, & do synopsis HW wont be collected on last week
TBD McD 8 8.1-2 Do Ch 8 odds thru 9, read evens thru 10, & do synopsis Bring in swaps rates
4/30 Exam