In the Immunisation Process

question 42

Multiple Choice

In the immunisation process:

• A) DGAP is not equal to zero.
• B) DGAP > 0.
• C) DGAP = 0.
• D) DGAP < 0.

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Definitions:

Insurance Premium

The amount of money an individual or business must pay for an insurance policy.

Face Value

(1) The amount paid at maturity of a Treasury bill or commercial paper. (2) The initial principal amount of a mortgage.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, leading to interest on interest.