I've been told by my professor that it should actually be .3*(5-t) for Harold's mortality. However would this not give me a probability greater then 1 for the first year?
Julio’s mortality for 1 ≤ t ≤ 4 is assumed to be governed by the law tpx =.2(4 − t). Harold’s mortality for 1 ≤ t ≤ 5 is governed by tpx = .3(4 − t). Ifi = .07, find the price at time 0 of an insurance policy which will pay 100, 000at the end of the year in which the first of Julio or Harold dies
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.