Q6. Consider the following situation. HIB bank is holding a zero-coupon bond valued at RM 1,000,000 in market today. This bond has 8 years maturity and a yearly yield of 6%. Table 1.2 provides the distribution of yield of the bond withs standard deviation of 25 basis points. 6a) Estimate the Daily Earnings at Risk (DEAR) at 99 and 95 percent confident levels. Interpret the results. (8 marks) 6b) Estimate 20 days market Value at Risk (VAR) of this bond. ( 2 marks) Q6. Consider the following situation. HIB bank is holding a zero-coupon bond valued at RM 1,000,000 in market today. This bond has 8 years maturity and a yearly yield of 6%. Table 1.2 provides the distribution of yield of the bond withs standard deviation of 25 basis points. 6a) Estimate the Daily Earnings at Risk (DEAR) at 99 and 95 percent confident levels. Interpret the results. (8 marks) 6b) Estimate 20 days market Value at Risk (VAR) of this bond. ( 2 marks)