Description: This paper, originally published in 1992 in the Transactions of Society of Actuaries Vol. 44, deals with a topic that is becoming increasingly important to actuaries in most fields of practice. “Without relying on formulas, this paper presents the important concepts underlying the theory of arbitrage-free pricing of interest-rate-contingent cash flows.” This paper, by James A. Tilley, won the 1992-93 Annual Prize, and the Halmstad Prize for 1992. The paper includes written discussion and the author’s review of the discussions.

Description: Panelists discuss a new actuarial textbook. Addressed are the rationale for the book, layout, and some practical applications of financial economics in an insurance or annuities context. From the Record of the Society of Actuaries, Vol. 23, No. 2.