Suppose that there two bonds A and B that may default and let T_A and T_B denote their respective default times. Suppose that T_A ~ Exponential (lambda_A = 0.10) and T_B ~ Exponential (lambda = 0.07). Assume that the risk free rate is 0 and that (F_A(T_A), F_B(T_B)) is distributed according to Joe's copula C(u, v) = 1- [(1-u)^2 + {1-v)^2 - (1-u)^2 (1-v)^2]^1/2 Consider an insurance with a payoff of $2 million if both bonds default before the end of the first year and $1 million if both survive the first year but they default before the end of the second year. Find the fair price of this insurance