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financial mathematics for actuaries. pleaae no excel. guaranteed like. 11. (10 points) An insurance company has expected liabilities of 5,000 and 10,000 at the end
financial mathematics for actuaries. pleaae no excel. guaranteed like. 
11. (10 points) An insurance company has expected liabilities of 5,000 and 10,000 at the end of year 1 and year 2 respectively. The following annual coupon bonds are available: Maturity (years) Annual Coupon Rate (r) Annual Effective Yield Par Value 1 0% 10% 1000 2 12% 12% 1000 Determine the cost to the company today to match its expected liabilities exactly. A. 11,000 B. 11,500 C. 12,000 D. 12,500 E. 13,000 11. (10 points) An insurance company has expected liabilities of 5,000 and 10,000 at the end of year 1 and year 2 respectively. The following annual coupon bonds are available: Maturity (years) Annual Coupon Rate (r) Annual Effective Yield Par Value 1 0% 10% 1000 2 12% 12% 1000 Determine the cost to the company today to match its expected liabilities exactly. A. 11,000 B. 11,500 C. 12,000 D. 12,500 E. 13,000 Step by Step Solution
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
