Question

5. japan life insurance company invested $10,000,000 in pure-discount u.s. bonds in may 1995 when the exchange rate was 80 yen per dollar. the company liquidated the investment one year later for $10,650,000. the exchange rate turned out to be 110 yen per dollar at the time of liquidation. what rate of return did japan life realize on this investment in yen terms?

Answer 1

Japan's life insurance market, the third largest in the world, is distinguished by a high percentage of families carrying life insurance policies. The demographic change and low interest rates in recent years have made life insurance businesses' jobs more difficult.

Japan life insurance:

In Japan, 59 percent of respondents to a study taken in 2021 said they had bought life insurance to cover medical and hospital costs, making this the main justification.

The nominal rate of return and the change in exchange rates are what determine the rate of return when investing in assets denominated in foreign currencies. As a result, compared to comparable investments denominated in local currency, the overall risk is higher.

In a contract for life insurance, a policyholder and an insurer or assurer agree that in the event of the policyholder's passing, the insurer will pay a predefined beneficiary a specific sum of money. Depending on the conditions of the contract, other situations like a critical illness or a terminal disease may also result in payment.

Learn more about Life insurance:

https://brainly.com/question/1373572

#SPJ4