Which formula represents the margin needed to compensate the lost yield as a percentage of premium (premium paid at inception, taxes midyear)?

• A. Capital x [investment yield x corporate tax rate / (1 - corporate tax rate)] / [premium x (1 + investment yield)^0.5]
• B. Premium x (1 + investment yield)^0.5 / Capital
• C. Capital x [investment yield / (1 - corporate tax rate)]
• D. Capital x [investment yield x corporate tax rate x (1 - personal tax rate)] / [premium x (1 + investment yield)^0.5]

Answer: (A)