Use the Following Two Columns of Items to Answer the Matching

question 35

Short Answer

Use the following two columns of items to answer the matching questions below:
-decreasing-term insurance
A)cash value and benefits to the beneficiary
B)combination of term insurance and a savings plan
C)premiums constant with reduced benefits
D)term insurance with a variable investment portion

• A)cash value and benefits to the beneficiary
• B)combination of term insurance and a savings plan
• C)premiums constant with reduced benefits
• D)term insurance with a variable investment portion

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Definitions:

Redeemed

The act of repaying or buying back something, such as repaying a loan, fulfilling a promise, or converting a financial security.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest over the life of the bond.

Straight-Line Method

A depreciation technique which evenly spreads the cost of a fixed asset over its useful life.

Effective Interest Rate Method

A method of calculating the amortized cost of a bond and the periodic interest expense over the life of the bond.