Tag Archives

One Article

Posted by admin on

Annuities, a note on price theory

While researching my articles on the UK 2014 budget, I wanted to write a quick note on Annuity prices, yields and interest rates, I came across nothing easy to find, but did come across these,
[jp-rss-feed url=”http://feeds.delicious.com/v2/rss/davelevy/annuity” numitems=”7″ getdesc=”50″]
There is a companion wiki article on the UK 2014 Budget.
A loan involves a bank giving someone a wedge of cash in exchange for an agreed periodic payment.
An annuity involves a bank giving someone an agreed periodic payment in exchange for a wedge of cash.
They are the same thing! So we should be able to price them the same way.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.