7. A 7% coupon bond with semi-annual payments has one year left until maturity. It has a current price of $99.15. If the six-month interest rate (continuously compounded per annum) is 7.5%, what is the twelve-month interest rate? 8. A trading desk has a portfolio consisting of $1 million invested in IBM and $2 million invested in Google. The daily standard deviation of return for IBM is 1.5% and for Google it is 2%. The correlation between their returns is 0.6. What is the three-day Value at Risk of the trading desk's portfolio at 95% confidence? Recall that the 95% cumulative probability value for a standard normal random variable is 1.67