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The policy that Life Insurance Co., is trying to sell you an investment policy that will pay you and your heirs $18,000 per year forever.
- The policy that Life Insurance Co., is trying to sell you an investment policy that will pay you and your heirs $18,000 per year forever. If the required return on this investment is 4.3.%, how much will you pay for the policy? Suppose the company told you the policy costs $445,000. At what interest rate could this be a fair deal ?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
