Amy Bought a Life Insurance Policy and Named Ben as Her

question 69

Multiple Choice

Amy bought a life insurance policy and named Ben as her beneficiary. She has since died. Who will receive the benefits from her policy?

• A) Ben.
• B) Ben's beneficiaries.
• C) Her contingent beneficiaries.
• D) Her parents.
• E) None of these.

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Definitions:

Bond Interest Expense

The cost incurred by an issuer of bonds to the bondholders, representing the interest payments made periodically.

Effective Yield

This term represents the total yield an investment returns, adjusted for compounding over a standard one-year period.

Present Value Factors

Mathematical factors used to calculate the present value of future cash flows, taking into account the time value of money and discount rates.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any remaining interest.