6. A financial institution has a bond worth $5,000,000 (par value). They would like to sell the bond in 6 months. The bond has a duration of 6 years. It is predicted that within the next few months interest rates will rise. a) What are two ways in which the institution can use call and put options on T-bonds to generate positive cash flows if this situation were to occur? 1 b) In what situations would the bank be more exposed overall to declines in interest rates? Think in terms of repricing gap and duration gap