Author Question: In which of the following policies does the premium typically increase as you age? A) Whole ... (Read 54 times)

P68T

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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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Answer to Question 1

B

Answer to Question 2

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



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