The liquidity of large bond position has deteriorated

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1. For a certain insurance contract, on (50), the death benifit for the first year of the contract is 1100, payable at the end of the year of death. the single premium for the whole contract is 600. this is the based on an interest rate of 10% for the first year and a mortality table with q50=0.20. if the value of q50 is changed to 0.25, while all other value of qx are unchanged, what is the new single premium?

2. The liquidity of a large bond position has deteriorated, causing a breach in the minimum liquidity limit in your portfolio's 5-day liquidity bucket. Describe 2 actions that can be taken to put your portfolio's 5-day liquidity back within limits.

Reference no: EM131936401

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