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Minimum premium for 30-year insurance policy

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Suppose mortality rates were a constant 1% each year over the life of a pool of individuals. If the risk-free interest rate is 2% per annum with semiannual compounding, what is the minimum premium (that sets the PV of the policy to zero) for a 30-year insurance policy with promising $1 million at death. Assume that the premiums are paid annually at the beginning of each year

Reference no: EM132779872

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