3+4+3 marks 21 a) Which of the money market securities is the most liquid and considered the most free-risk why? b) A bond currently sells for $1250. It has an 11% coupon rate and a 20-year maturity. but it can be called in 5 years at $ 1110. Assume a par value of $ 1000. i. What is its yield to maturity (YTM)? ii. What is its yield to call (YTC)? lii. Is the bond likely to be called if interest rate don't change? c) An insurance has the following portfolio of investments: i. Bonds with a value of $1.520.000 and duration 4.5 years. ii. Stock dividends payments with a value of $1.600.000 and duration 14.5 years. iii. Certificate of deposits payments with a value of $2,350,000 and duration 2 years. Calculate the duration of the portfolio of investments