Calculate the bond price. Face Value $5,000 Coupon Rate 6% Yield To Maturity 6% Redemption Value $6,000 Years To Maturity 15 Coupon Payment Duration Annually

The cash surrender value for Lee Chin would be \approx imately $91,000. An endowment policy is a type of life insurance policy that pays out a lump sum at the end of a specified term, or to the beneficiary if the policyholder dies before the policy term ends. In this case, Lee purchased a $200,000 20-year endowment policy. However, at the end of year 15, Lee stopped paying premiums. This means the policy would have lapsed and no longer be in force. The cash surrender value is the amount that Lee would receive if he were to surrender the policy back to the insurance company at this point. The cash surrender value is calculated by taking into account the premiums paid and the investment returns earned by the insurance company on those premiums. In this case, assuming an annual investment return of 4%, the cash surrender value would be \approx imately $91,000.