Interest Rate Risk
Several past questions ask to asses the interest rate risk, but I don't see it in the material for this section. Is this still on the exam?
Several past questions ask to asses the interest rate risk, but I don't see it in the material for this section. Is this still on the exam?
Comments
We checked the Fisher source text and there's no mention of interest rate risk in it. Looking at the exams available (prior to moving to CBT), they asked about interest rate risk in 2015 (#13, biii). In that particular question they were looking to see if candidates knew how the different types of loss sensitive rating plans work and relate that to a changing interest rate environment. No calculation was required. This is before the Fisher text replaced several other texts on the syllabus, so may have been explicitly mentioned in a reading that's no longer on the syllabus.
It's likely a question like 2015 #13 would still be considered fair game today as the exam questions can draw on concepts across multiple readings and lower level exams.