1. Lecture 12 Course Summary

2. What You Should Have Learned in this Course
Why actuaries need to understand interest rate models
How to determine yields, spot rates and forward rates
How interest rates have moved in the past
How to classify interest rate models

3. What You Should Have Learned in this Course (p. 2)
When tree models are appropriate
What the features of the popular models are:
Vasicek
Cox-Ingersoll-Ross
Heath-Jarrow-Morton
Hull-White
How interest rate models have been applied to value investments and for asset-liability management

4. What You Have Added to Your Library
Hull Options, Futures, and Other Derivatives
Fabozzi Valuation of Fixed Income Securities and Derivatives
Articles on interest rates and interest rate models

5. What Skills You Should Now Have
How to calculate yields, spot rates and forward rates
How to use a tree model to calculate the value of a cash flow
How to use a simulation model to value a cash flow
How to determine which type of interest rate model is most appropriate for a particular application
How to select the parameters for an interest rate model

6. What’s Next Take the final exam so you complete the course
Pay attention to interest rate movements and factors that affect interest rates
Try to use interest rate models in your work
Contribute to the literature of interest rate modeling
Give us feedback on this course and suggestions for improvement