Bonus Question 3 (8 points) Basel is a global regulatory framework govering the risk-based capital calculations for many money-center banks. Basel Agreement is named after a small city (Basel) located in northwest Switzerland Below please find the Financial Risk Rating system used in a typical international bank or asset management company such as fixed income portfolio management. COR: credit quality rating BQR: for borrower quality rating AQR stands for asset quality rating and it is derived from a combination of BQR and CQR. Question Using Excel's index (combining with IF statement or other functions if applicable), design an Excel form that automatically derives the AQR value with a given BRR and CQR combination. Raw data is displayed I, elow and can also be found on the course website CORO COR 1 COR 2 COR 4 COR 5 COR 6 CQR 3 CQR 7 0 1 2 3 4 5 6 7 1 1 1 1 1 1 2 1 1 1 1 1 2 3+ 1 2 3 1 2 3 Nd 3 1 1 2 3+ 4 1 2 3 3- 4 4- 4- BQR 1 BQR 2 BOR 3 BQR 4 BQR 5 BQR 6 BQR 7 BQR 8 BQR 9 4+ 5+ 5 1 2 4+ 4- 5- 5 6+ 6 1 3 5+ 5 5- 5- 6 7+ 6 1 4 5- 6 6- 7+ 7 + 7 8 9 1 5- 7 7- 7- 8 8 8 1 7+ 8 8 8 8 8 8 Derived AQR BOR 4 COR 3 5 2 Derived AQR 3- 2 5- 2 7 +