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Use Table 3.1 on p.54 to calculate the minimum premium an insurance company should charge for a $10 million three-year term life insurance contract issued
Use Table 3.1 on p.54 to calculate the minimum premium an insurance company should charge for a $10 million three-year term life insurance contract issued to a man aged 41. Assume that the premium is paid at the beginning of each year and death always takes place halfway through a year. The risk-free interest rate is 5% per annum (with semi-annual compounding).
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