The interest-adjusted cost method

Assignment Help Finance Basics
Reference no: EM131047781

a. Why is the interest-adjusted cost method a more accurate measure of the cost of life insurance?

b. Briefly describe the surrender cost index as a method for determining the cost of life insurance.

c. Briefly describe the net payment cost index as a method for determining the cost of life insurance.

Reference no: EM131047781

Questions Cloud

Examine the resume themes letter themes and fax themes : Go to Microsoft Office's Website, and view the business templates. Examine the resume themes, letter themes, fax themes, report themes, and any additional themes that you find interesting.
Now compute the value using annual data : Maris Motors Co. pays a $2.15 dividend every quarter for its perpetual stock. If you expect an annual return of 8.75% on your investment, compute the stock price that you would be willing to pay, using quarterly data. Now compute the value using annu..
Component in most cash-value policies negative : Why is the rate of return on the saving component in most cash-value policies negative during the early years of the policy?
What is the expected return for the overall stock market : Assume that the risk-free rate is 2.5% and the market risk premium is 4%. What is the expected return for the overall stock market? What is the required rate of return on a stock with a beta of 1.1?
The interest-adjusted cost method : a. Why is the interest-adjusted cost method a more accurate measure of the cost of life insurance? b. Briefly describe the surrender cost index as a method for determining the cost of life insurance.
What is the annualized interest rate in this account : Suppose your final account balance is $4,051.72 in an account that you made regular monthly payments of $100 for 3 years. What is the annualized interest rate in this account? (List your answer as a percentage without the percent sign and use two dec..
Semiannual coupon bond matures-what is the bonds price : An 6% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.0588%. What is the bond's price? What is the bond's YTM?
Yield curve is horizontal and interest rate at current level : Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,185. What is the yield to maturity? If the yield curve is horizontal and intere..
Features of unus criticism of western aid agencies : What are the main approaches, philosophy, and agendas of the Western aid agencies that seek to eliminate poverty in Third World countries like Bangladesh? What are the main features of Yunus' criticism of Western Aid Agencies? Are they valid?

Reviews

Write a Review

Finance Basics Questions & Answers

  The firm''s required return

ABC Company's last dividend was $1.3.  The dividend growth rate is expected to be constant at 7% for 3 years, after which dividends are expected to grow at a rate of 4% forever.  The firm's required return (rs) is 15%.  What is its current stock pric..

  Hal invested 2000 per year in an ira each year for 6 years

hal invested 2000 per year in an ira each year for 6 years earning 15 compounded annually. at the end of 6 years he

  A project returns -5 if the stock market returns -10 and 5

a project returns -5 if the stock market returns -10 and 5 if the stock market returns 10. what is the market beta of

  A gold-mining firm is concerned about short-term volatility

a gold-mining firm is concerned about short-term volatility in its revenues. gold currently sells for 1592 an ounce but

  Most recent annual report

Use the direct link to SEC website (provided by me) to acquire a copy of the most recent annual report (2014) for the publicly traded company, Facebook.

  The dmvthe division of motor vehicles dmv is part of the

the dmvthe division of motor vehicles dmv is part of the state department of transportation dot. the purpose of that

  How do we define risk what does it mean to diversify the

how do we define risk? what does it mean to diversify your portfolio and what are you trying to gain by so doing? what

  The signet corporation has issued four-month commercial

the signet corporation has issued four-month commercial paper with a 6 million face value. the firm netted 5870850 on

  State the tools of fiscal policy

Suppose that the economy is already in a recession, & both the President and Congress have decided to do something to restore the economy.

  What will be the firm quick ratio

How much can a company's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raise the maximum amount of short-term funds?

  90 day risk free securities in the united states

Question 1  Assume that interest rate parity holds, in both the spot market and the 90 day forward market, 1 japanese yen equals 0.0086 dollar. In japan, 90 day risk free securities yield 4.6%. what is the yield on 90 day risk free securities in the ..

  You work for pitloa inc which is considering a new project

you work for pitloa inc. which is considering a new project whose data are shown below. what is the projects year 1

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd