10. A life insurer owes $550,000 in eight years. To fund this outflow, STRIPS that mature in eight years. The STRIPS have a $5,000 face value per STRIP pay a 6 percent APR with semiannual compounding. How much must the insurer spend m to fully fund the outflow (to the nearest dollar)? A) $110,000 B) $342,742 C) $355,224 $362,355 D) E) none of above quote and a 90-day maturity, what

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Give typing answer with explanation and conclusion
E) none of above
( ) 10. A life insurer owes $550,000 in eight years. To fund this outflow, the insurer wishes to buy
STRIPS that mature in eight years. The STRIPS have a $5,000 face value per STRIP and
pay a 6 percent APR with semiannual compounding. How much must the insurer spend now
to fully fund the outflow (to the nearest dollar)?
A)
$110,000
B) $342,742
$355,224
C)
D)
$362,355
E)
none of above
discount quote and a 90-day maturity, what is the
Transcribed Image Text:E) none of above ( ) 10. A life insurer owes $550,000 in eight years. To fund this outflow, the insurer wishes to buy STRIPS that mature in eight years. The STRIPS have a $5,000 face value per STRIP and pay a 6 percent APR with semiannual compounding. How much must the insurer spend now to fully fund the outflow (to the nearest dollar)? A) $110,000 B) $342,742 $355,224 C) D) $362,355 E) none of above discount quote and a 90-day maturity, what is the
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