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In case of supplementary contracts, the amount of each payment is computed on the basis of the assumed (or guaranteed) interest rate and the number and frequency of payments selected. For example:
The return on an instrument over a period of time is a combination of the cash flow it generates and the change in its value.
An entity's practices concerning loss settlement, such as a practice of vigorously defending suits or of quickly settling suits, can have a significant effect on an entity's loss experience.
What is derived from its future cash flows, adjusted for risk as well as any other relevant economic characteristics?
