a 1. Set up the problem (you do not need to do the calculations) for determining the minimum premium that an insurance company should charge for a $1-million two-year term life insurance contract issued to a male aged 60. Assume that the premium is paid at the beginning of each year and, if death occurs during a particular year, it occurs at the beginning of the year just after the premium is paid. The risk- free interest rate is 6% per annum with semiannual compounding. Here are the mortality rates from Table 3.1 (5th edition) that you need for the calculations: Age Probability of (Years) death within 1 year 60 0.011197 61 0.012009 Hint: Recall that 6% with semiannual compounding means 3% every six months. For example, the 6- month PV factor is 1/1.03 (i.e., 1.03-?) and the two-year PV factor of 1.03-4. 2. a) Under the assumptions of problem 1, what is the minimum premium for a 1-year term life insurance policy for a 60-year-old male? a a 1. Set up the problem (you do not need to do the calculations) for determining the minimum premium that an insurance company should charge for a $1-million two-year term life insurance contract issued to a male aged 60. Assume that the premium is paid at the beginning of each year and, if death occurs during a particular year, it occurs at the beginning of the year just after the premium is paid. The risk- free interest rate is 6% per annum with semiannual compounding. Here are the mortality rates from Table 3.1 (5th edition) that you need for the calculations: Age Probability of (Years) death within 1 year 60 0.011197 61 0.012009 Hint: Recall that 6% with semiannual compounding means 3% every six months. For example, the 6- month PV factor is 1/1.03 (i.e., 1.03-?) and the two-year PV factor of 1.03-4. 2. a) Under the assumptions of problem 1, what is the minimum premium for a 1-year term life insurance policy for a 60-year-old male? a