Question 5 (6 marks) Sam pays $10,000 now to purchase a special deferred perpetuity-due. The perpetuity-due...

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Answer 1

Answer #1

The deferral period is the period of time from when a person has become unable to work until the time that the benefit begins to be paid.

Hence in above Sam has started getting Benefits in Monthly payments after buying the Perpetuity. Hence the Deferral Period is 1 Month.

Answer 2

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