7. Company XYZ has a long position in a two-year bond and a three-year bond as well as a short position in a four-year bond. The companys partial durations for the one-year, two-year, three-year, and four-year bond rates are D1= -0.5, D2 = 1.0, D3 = 3.0 and D4 = -2.5. Use the data in Tables 14.7 and 14.8 to calculate a 20-day 95% VaR on the assumption that rate changes are explained by (a) one factor, (b) two factors, and (c) three factors. The current portfolio value is $25M. Assume factor scores are normally distributed.