fixed-interest
2.Being fixed-interest, the price varies with (or to be precise against) theprevailing rate of interest.
7.Preference shares are more like fixed-interest loans since the dividend is set in advance, and must be paid if the company is in profit.
8.The simplified formulas of balanced annual premium is obtained according to the following models: fixed interest rate, Wiener process model, reflected Brownian motion model and combined model of reflected Brownian motion and Poisson process with random interest rate, respectively. The simple formulas for actuarial present value of balanced annual premium are obtained under the condition of uniform distribution of deaths.


