LRC( onerous) in excel file
In the App C Sh - 1 LRC onerous tab, in the effective duration calc, how come the RA is not just the Disc FCF using the discount rate + 0.1% multiplied by 10% margin? Like what was done in the effective duration calculation in App B Sh 1- LIC ?
Comments
Check the formula correctly, it is discounting the FCF using the VLOOKUP formula
it is not discounting the FCF but discounting the Future Claims & Claims Exp in the excel file, can you confirm which one is correct?
It is discounting the Future cash flow? FCF = Future claims * RA. The RA is just a scalar