both and b plz, it's hurry

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)(l) below (a) (i) What causes bond yields to change on a daily basis? [2 marks] (a) (ii) 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 = 1). Over the last year, The historical mean change in the stock market Index was 0.0 per cent and the standard deviation of the stock market index was 1.6%. (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 change in the stock market index was 0.0 per cent and the standard deviation of the stock market index was 1.6%. * REQUIRED: Answer (b)().-(b)() below (b) (1) Carefully explain how can we interpret the statement in the question that the stock market index had a mean daily return of 0.0% with a standard deviation of 1.8%. [2 marks) (b) (ii) Calculate the 90% DEAR for Equities, based on the given data. [2 marks) 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)(l) below (a) (i) What causes bond yields to change on a daily basis? [2 marks] (a) (ii) 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 = 1). Over the last year, The historical mean change in the stock market Index was 0.0 per cent and the standard deviation of the stock market index was 1.6%. (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 change in the stock market index was 0.0 per cent and the standard deviation of the stock market index was 1.6%. * REQUIRED: Answer (b)().-(b)() below (b) (1) Carefully explain how can we interpret the statement in the question that the stock market index had a mean daily return of 0.0% with a standard deviation of 1.8%. [2 marks) (b) (ii) Calculate the 90% DEAR for Equities, based on the given data. [2 marks)