Fall 2015 Q19 Part b versus Spring 2017 Q20 part b
In the two exam questions mentioned, the payment duration for 2015-Fall-Q19-part b is 0.5, 1.5 and 2.5;
while for 2017-Spring-Q20-part b is 1, 2, 3;
even though both say that loss payments are expected to occur during the middle of each year.
Should we not use 0.5, 1.5 and 2.5 for 2017-Spring-Q20-part b ?
Comments
There is nothing special about 2017-Spring-Q20-part b. They just failed to observe the mid-year convention in their answer.