Question

A convertibility option added to a term policy gives the insured the option of

Select one:

A. converting the term policy into cash.

B. converting the term policy to a whole life policy.

C. converting the term insurance to common stock of the insurance company.

D. canceling the policy at any time.

Duration is a measure of

Select one:

A. the bond's reinvestment risk.

B. a bond's price.

C. a bond's contractual maturity.

D. bond price volatility.

Answer 1

B. converting the term policy to a whole life policy.

convertibility option added to a term policy gives the insured the option of converting the term policy to a whole life policy.

D. Bond price volatility

Duration is a measure of bond price volatility.

Thanks