The questions are in the screenshot, please check the attachment

Questions: You are holding 8,000 bonds issued by Company XYZ. The bond is non-callable, has a face value of $1000, a remaining time to maturity of 3 years, a coupon rate of 6% paying coupons annually. What is the 1-year VaR of this credit exposure? 1. Choose the company XYZ. Clearly indicate it in your assignment write-up. 2. (1.5 marks) Search for public information on credit rating migration. Download the transition matrix data and include this data in the write-up. Clearly disclose your data source. Hints: Not all data is available. Look for what is best for your analysis. Discuss what you find and why you choose certain data. 3. (2.5 marks) Use the following data on the 5th rates, calculate the 1 year ahead forward rates that you need for your analysis. Rating 1year 3years 4years 5years 7years 8years AAA 1.0% 1.05% 1.1% 1.2% 1.3% 1.45% 1.6% 1.7% AA 1.05% 1.20% 1.3% 1.4% 1.75% 1.85% A 1.15% 1.3% 1.55% 1.7% 1.85% 2.05% 2.25% BBB 1.4% 1.9% 2.25% 2.55% 3.4% 3.5% BB 3% 3.7% 4.3% 4.3% 6% 6.6% 5% 6.1% 6.9% 7.3% 10.5% 12% ccc 8% 15% 22% 30% 40% 52% 4. (6 marks) Assuming that your bond is ranked as a subordinated debt. What is the 90% VaR of the credit exposure? Discuss the result