A Life Insurance Firm Wants to Minimise Its Interest Rate

question 59

Multiple Choice

A life insurance firm wants to minimise its interest rate risk and it is planning on paying out $250 000 in five years. Which one of the following investments best matches its goal?

• A)High yield utility shares
• B)5-year zero coupon bonds
• C)10-year coupon bonds
• D)Money market investments rolled over as needed

Explain the requirements and expectations of counselors under HIPAA.

Understand the roles and rights established by FERPA for students and educational institutions.

Distinguish between healthcare and educational disclosures under emergency conditions.

Recognize the importance and procedures for disaster preparedness and response in counseling.

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Definitions:

Short-term Creditor

An entity or individual that lends money with the expectation of repayment within a short period, typically within a year.

Acid-test Ratio

A financial metric that measures a company's ability to pay its current liabilities with its most liquid assets, excluding inventory.

Asset Turnover

A measure of how efficiently a company uses its assets to generate sales; computed by dividing net sales by average total assets.

Price-earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share.