One catastrophe bond is sold for $90 and has $100 face value, and the trigger event has 1% probability of occurrence. If the trigger event happens, the investor receives nothing at the maturity date. If the trigger event does not happen, the investor receives the face value. What is the expected return of this bond? O 10% O 8.9% O 11% O 9.9% Tom has a homeowner's policy with a 80% coinsurance clause. The full insurable value of his property is $1,000,000. He is only carrying $400,000 in coverage. A fire in the kitchen breaks out (which is a covered peril) and Tom incurs $200,000 in damages. How much will Tom recover from his insurance policy, ignoring any deductibles? O $40,000 O $160,000 O $200,000 $100,000