11. Suppose a bond has a value of $ 2 million and duration is 4 years. Current interest rate is 10%. If the interest rate changes by 1% (interest rate becomes 11%), what is the new value for the bond? a. $1,623 b. $1963 c. $1,801 d. $1,927 e. None above 12. Ceteris paribus, if we expect that interest rate is going to increase, we prefer to have Positive duration gap b. Negative maturity gap Positive repricing gap d. Positive duration gap and positive repricing gap e. None above 13. Suppose a bank calculates its daily 90% Value at Risk as $1 million. What does it mean? If tomorrow is a bad day, bank will experience a loss of $1 million with a probability of 10% b. If tomorrow is a bad day, the bank will experience a maximum loss of $1 million with a probability of 10% c. If tomorrow is a bad day, the bank will experience a maximum loss of $1 million with a probability of 90% d. If tomorrow is a bad day, the bank will experience a minimum loss of $1 million with a probability of 90% e. If tomorrow is a bad day, bank will experience a maximum loss of $1 million with a probability of 10 to 90%