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Author Question: In which of the following policies does the premium typically increase as you age? A) Whole ... (Read 39 times)

P68T

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on: Jul 11, 2018
In which of the following policies does the premium typically increase as you age?
 
  A)
 
  Whole life
  B)
 
  Renewable term
  C)
 
  Decreasing term
  D)
 
  Group mortgage life

Question 2

Suppose a preferred share pays perpetual QUARTERLY dividends of 0.25 and has a per annum dividend yield of 6 percent. What is the fair value of this preferred share?
 
  A) 14.67
  B) 15.33
  C) 16.00
  D) 16.67


amy.lauersdorf90

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Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

D
Explanation: D) PV = PMT/r = .25/0.015 = 16.67.


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