If the Health Insurance Premium Is Equal to $2,000 and Administrative

question 20

Multiple Choice

If the health insurance premium is equal to $2,000 and administrative fees are $500,then what is the benefit/premium ratio?

• A).25
• B).50
• C).75
• D)Cannot be calculated with the above information

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Current Yield

Current yield is a financial term used to describe the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.

Coupon Rate

The yearly interest yield from a bond, shown as a percentage of its nominal value.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime, factoring in its current market price, face value, interest rate, and time to maturity.