a. Calculate the FI’s profit spread and dollar value of profit in year 1.

b. Calculate the profit spread and dollar value of profit in year 2, if the FI can reinvest its assets at 9 percent.

c. If interest rates fall and the FI can invest in one-year assets at 6 percent in the second year, calculate the FI’s profit spread and dollar value of profit in year 2.

d. If interest rates rise and the FI can invest in one-year assets at 11 percent in the second year, calculate the FI’s profit spread and dollar value of profit in year 2.