Answer:
90 Days
Explanation:
As generally, an insurer has got all the rights to recover from the insurance company, which are enclosed in the insurance agreement.
When there is a group plan and there is discontinuity on the part of carrier then the insurer holds the right to get the service for 90 days, from the date of discontinuity or that of total disability.
This period is define as per the legal terms of an insurance agreement, made under the prevailing laws and regulations.
if the advance is not repaid before the grace period and penalty fees are triggered
from the day money is borrowed and membership fees are triggered
if the advance is not repaid before the grace period and transaction fees are triggered
B) the money is available in case a national emergency occurs.
C)the money grows , increasing the national wealth.
D)goverments borrow the money by selling bonds.
A) shares
B) bonds
C) annuities
Expected capital gains yield for this bond = 3.08%.
Given that Coupon Rate (Annual) = 8.95%, Yield to Maturity = 3.87%, Par value = $1,000, Period = 13 years. We need to find Expected Capital Gains Yield.
We know that the formula for the yield on a bond is, Yield on bond = Current Yield + Capital Gains Yield. Here, we know the current yield and yield to maturity. So, Capital Gains Yield = Yield on bond - Current Yield. Now,Current Yield = Annual Coupon / Current price.
Current price can be found using the following formula, Current price = PV of Bond = C x (1- (1+i)^-n / i) + FV x (1+i)^-n where, C = Coupon Rate (Annual), FV = Face value i = Yield to Maturity / 2 (as it is semi-annual) and n = Years to Maturity x 2 (as it is semi-annual).
Substituting values in the above formula, we get, Current price = $1,153.42Current Yield = 8.95% / $1,153.42 = 0.00776Expected yield on bond = 3.87% + 0.00776= 3.08%. Therefore, the expected capital gains yield for this bond is 3.08%.
To know more about capital gains , refer here
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