Question: Manon has a utility function U(T) = 27VI, where is income. She has an investment opportunity where there is a 30% chance of earning $15300,

Manon has a utility function U(T) = 27VI, where is income. She has an investment opportunity where there is a 30% chance of earning $15300, 30% chance of earning $28700, and a 40% chance of earning $36200. What is the risk premium associated with this investment opportunity? Answer: $ (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO 2 DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.) A $25000-face-value bond has a 5.9% coupon rate, its current price is $24840, and is expected to be sold for $25560 next year. What is the bond's expected rate of return? Answer: % (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES.)

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