B3. FIM Bank is an Australian bank, it wants to obtain the daily earnings at risk (DEAR) on its trading portfolio. The portfolio consists of the following assets: (a) Fixed-income securities (Bonds): The bank holds a 15-year zero coupon bond with a face value of AUD$2,000,000. The bond is trading at a yield to maturity of 4 percent. The potential adverse move in yields is 0.75%. *REQUIRED: Answer (a)(i) & (a)() below (a) (i) What causes bond yields to change on a daily basis? [2 marks] (a) (11) Calculate the 90% DEAR for Fixed Income, based on the given data. [3 marks) (b) Equities: The bank holds an AUD$8 million trading position in stocks that reflects the stock market index (the B-1). Over the last year. The historical mean en DELL F9 F10 F11 55 F6 F7 F8 B3. FIM Bank is an Australian bank, it wants to obtain the daily earnings at risk (DEAR) on its trading portfolio. The portfolio consists of the following assets: (a) Fixed-income securities (Bonds): The bank holds a 15-year zero coupon bond with a face value of AUD$2,000,000. The bond is trading at a yield to maturity of 4 percent. The potential adverse move in yields is 0.75%. *REQUIRED: Answer (a)(i) & (a)() below (a) (i) What causes bond yields to change on a daily basis? [2 marks] (a) (11) Calculate the 90% DEAR for Fixed Income, based on the given data. [3 marks) (b) Equities: The bank holds an AUD$8 million trading position in stocks that reflects the stock market index (the B-1). Over the last year. The historical mean en DELL F9 F10 F11 55 F6 F7 F8