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22 The insurance company collected $6,000,000 in insurance premiums against these liabilities. The insurance company is considering to invest in 6-year zero coupons bond and
22 | The insurance company collected $6,000,000 in insurance premiums against these liabilities. The insurance company is considering to invest in 6-year zero coupons bond and a 10 years zero coupon bond where each has a $1000 face value. Determine the following in the yellow highlighted cells. | |||||||
Bond/Maturity | Interest rate | # of bonds to buy | Current Bond Value | Total $ investment | ||||
6 | 0.06 | |||||||
10 | 0.074 | |||||||
Total Investment |
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