A life insurer owes 800000 in 8 years to fund this outflow, Ask an Expert

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A life insurer owes $800,000 in 8 years. To fund this outflow the insurer wishes to buy strips that mature in 8 years. The strips have a $1000 face value per strip and a 6% annual rate with semi-annual compounding. How much strips (in dollar amount) must the insurer buy now to fully fund the expected cash outflow (to the nearest dollar) in 8 years?

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Financial Management, Finance

Category:- Financial Management
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