Question 1 (15 marks) 1A) In a two-period model, an individual earns and consumes ci in period 1 and only consumes C2 in period 2. Suppose the saving interest rate is 3.3% and the income in period 1 is $4,500. Assuming consumption smoothing, the consumption (C1 or C2) for period 1 and period 2 should be $_A . Compute A. (5 marks) Put your answer here (including steps) (5 marks) 1B) Compute Rj using CAPM model. Rf=2% Rm = 5% B = 1.2 Put your answer here (including steps) 1C) Calculate the bond duration (5 marks) Par value of bond price Coupon rate annual interest rate on bond) Maturity Yield to maturity $1200 7% 3 years 9% Put your answer here Time until Payment (in years) duration=