Consider a $100 million position in 30-year investment grade corporate bonds. Assume this position was bought at $95 million on day 1 and sold at an average price of $95.75 million over the next five days. What is the RAROC from this transaction? Assume the trader booked a gain of $785,000. Also assume that it would take a maximum of five days for a trader to exit a position of $100 million in 30-year investment grade corporate bonds. Searching historical information might reveal that the maximum five-day decline in the price of 30-year investment grade corporate bonds was 7%.