An insurance company has the following claim payments to make: time (years) payment $880 2 $1,000...

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An insurance company has the following claim payments to make: time (years) payment $880 2 $1,000 And the following annual coupon bonds to choose from: Yrs to maturity Coupon rate Par value = Price $1,000 $1,000 $1,000 4% 2 5% 3 6% What is the cost to the company to match the claim payments exactiy? An insurance company has the following claim payments to make: time (years) payment $880 2 $1,000 And the following annual coupon bonds to choose from: Yrs to maturity Coupon rate Par value = Price $1,000 $1,000 $1,000 4% 2 5% 3 6% What is the cost to the company to match the claim payments exactiy?

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Cost of claim in yea... View the full answer