( 0.5 point ) Consider a $ 100 million position in 30 - year investment grade corporate bonds . Assume this position was bought at $ 95 million on day 1 and sold it over the next five days . What is the RAROC from this transaction ? Assume the trader booked a gain of $ 785,000 . Also assume that it would take a maximum of five days for a trader to exit a position of $ 100 million in 30 - year investment grade corporate bonds . Searching historical information might reveal that the maximum five - day decline in the price of 30 - year investment grade corporate bonds was 7 % .