The policy that Life Insurance Co., is trying to sell you an investment policy that will pay
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Question:
- The policy that Life Insurance Co., is trying to sell you an investment policy that will pay you and your heirs $18,000 per year forever. If the required return on this investment is 4.3.%, how much will you pay for the policy? Suppose the company told you the policy costs $445,000. At what interest rate could this be a fair deal ?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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