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2. Which of the following statements is (are) correct? 1. The insurer can use the longevity bond to hedge the annuity risk of the increasing

2. Which of the following statements is (are) correct? 1. The insurer can use the longevity bond to hedge the annuity risk of the increasing life expectancy. II. The buyers of the mortality bond may lose the principal if there are more deaths than expected. a. I only b. ll only c. Both I and II d. Neither I nor it

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