2. Consider managers holding mortgage debt currently worth $900 million in early 2009. They estimate there is a 25 percent chance the market will worsen and the worth of the bonds will drop to $400 million. They also estimate a 75 percent chance the market will remain relatively constant. Assume that the managers are risk-averse, they may have a utility (U) function of U(w) = w0.5(units are in $ million) a. What is the expected wealth of the bonds? b. What is the expected utility from the bonds? c. What is the certainty equivalent?