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Please answer #22's Highlighted portions. estimate on 11/15/2020 be if An insurance company has two liabilities to meet according to the Table 1. Table 1
Please answer #22's Highlighted portions.
estimate on 11/15/2020 be if An insurance company has two liabilities to meet according to the Table 1. Table 1 Presesent Value Liability Maturity $Liab 1 6 21 Provide the present value of each liability and the PV of the total liabilities in the yellow highlighted area in K4:K6 $5,000,000.00 $3,000,000.00 Spot rate of leability 0.06 $3,524,802.70 0.074 $1,469,191.62 2 10 The insurance company collected $6,000,000 in insurance premiums against these liabilities. The insurance company is considering to invest in 6-year 22 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. # of bonds to Current Bond buy Value Total $ investment Bond/Maturity Interest rate 6 0.06 10 0.074 Total InvestmentStep by Step Solution
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