CHANGES TO THE SYLLABUS AND CORE READING FOR

SUBJECT CT1 FOR THE 2016 EXAMINATIONS

Changes to the Syllabus and their impact on Core Reading
There have been no changes to the Syllabus.

Changes to Core Reading

UNIT 11
The following text has been added to the end of Section 3.3
Conversely, if we know the real yield i which we have obtained from an equation of value using
inflation-adjusted cashflows then we can calculate the money yield as follows:
i = i + j(1 + i)
UNIT 13
The following text has been added to the end of Section 5.3
Note that another definition of duration exists; the modified duration. This is covered in more detail
in Subjects ST5 and ST6 (Finance and Investment Specialist Technical A and B) but can be expressed
in terms of the Macauley Duration as

i( p)
1
p
Where i(p) and p are as defined in Unit 3.
The only other changes that have been made to the Core Reading are to correct typographical errors
and improve the style.

END

Institute and Faculty of Actuaries

CT1 changes