APPLICATION OF VASICEK™S RATE INTEREST MODEL IN TERM INSURANCE PREMIUMS CALCULATION

Authors

  • SUDIANTO MANULLANG UNIVERSITAS NEGERI MEDAN

Abstract

Factor of interest rate and mortality is former principal components to get premium of term insurance. Vasicek's rate of interest model is one of stochastic rate of interest model that is utilized on derivatif that becomes discount factor of zero coupon bond's price, and solved by Affine's model to get annuity, actuarial value so results annual net premium of term insurance.Key Word : Vasicek™s rate of interest model

Author Biography

SUDIANTO MANULLANG, UNIVERSITAS NEGERI MEDAN

JURUSAN MATEMATIKAFAKULTAS MATEMATIKA DAN ILMU PENGETAHUAN ALAMUNIVERSITAS NEGERI MEDAN

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Published

2017-08-28