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At the end of the contract term, our precise financial objective is either zero (for the annuity) or 10,000 real/nominal (for the endowment). To achieve that result, by how much must we adjust the initial pricing discount rate?

For a fully inflation-protected endowment fully invested in conventional bonds, the MtM approach would have required an adjustment of 0.51% pa, whereas the Off approach would have required an adjustment of 0.08% pa (see chart).

I am not suggesting that mark-to-market is always worse than off-market but it mostly is; see a few extracted figures.