Premiums are paid annually and at beginning of year. Interest rate is 4% with semi-annual compounding. A $10M term insurance is being taken by a 50 years old male. Probability of death at age of 50 is 0.005038 and at age of 51 is 0.00552. Calculate expected payout for 1 year and 2 year insurance term, assuming payout occurred halfway throughout the year.
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