1 is part of your total return. (points) Today (i.e., at t = 0), a risk-free, 5% coupon, $1,000 face value bond paying annual coupons that matures in 4 years is currently trading in the market at a price of $858.56. You also know that the yields on zero-coupon, risk-free bonds that mature En 1 year and 2 years are 7.00% and 8.00%, respectively. If the Unbiased Expectations Theory holds, what price should the coupon bond trade at in one year from today (1.e., at t = 1)? Hint: The coupon payment at t= (a) $771.37 (b) $823.65 (c) $868.66 (d) $882.41 (e) $903.11 (f) $793.98 (3 points) An insurance company has an obligation to a customer. The obligation requires the insurance company to make a payment of $20 million in 10 years and $40 million in 20 years. Assume annual compounding and that the yield curve is flat at 6.00%. What is the duration of the company's "liability portfolio"? (a) 13.831 (b) 11.757 (c) 14.339 (d) 15.276 (e) 16.930 (f) 18.355 (g) Cannot be determined